Building Societies Act 1965

Management and administration - Determination of disputes

109: Determination of disputes by arbitration

You could also call this:

"Settling arguments in building societies using outside help"

If a building society's rules say that disputes should be settled by arbitration, here's how it works:

You can choose one person to be the arbitrator if everyone agrees. If you can't agree on one person, each side in the dispute picks their own arbitrator. These two arbitrators can then choose a third person to help if needed.

The people chosen as arbitrators or helpers can't have any personal interest in the society's money. Also, the person who keeps official records of the society (called the Registrar) isn't allowed to be an arbitrator or helper.

When you use arbitration to solve a dispute, you need to follow the rules set out in a law called the Arbitration Act 1908. This law explains how arbitration should work.

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This page was last updated on 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372096.

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108: General provisions as to disputes, or

"Rules for solving disagreements in a building society"

110: Determination of disputes by Registrar, or

"The Registrar used to help solve disagreements, but this rule was removed"

Part 7Management and administration
Determination of disputes

109Determination of disputes by arbitration

This section shall have effect where a society's rules direct that disputes shall be referred to arbitration.
Every such reference to arbitration shall be—
to a sole arbitrator agreed on by the parties to the dispute; or
if the parties do not agree on a sole arbitrator, to 2 arbitrators, one to be appointed by each party to the dispute, with power to the 2 arbitrators to appoint an umpire.

No such arbitrator or umpire shall be beneficially interested, whether directly or indirectly, in the funds of the society.
The Registrar shall not be eligible for appointment under this section as a sole arbitrator, or as one of 2 arbitrators or as an umpire.
For the purposes of any such arbitration, this section shall be deemed to be a submission within the meaning of the Arbitration Act 1908, and the provisions of that Act, so far as they are applicable, shall apply accordingly.

Notes

Section 109: replaced, on 27 November 1970, by section 7(1) of the Building Societies Amendment Act 1970 (1970 No 117).
Section 109(4): replaced, on 1 September 1987, by section 25 of the Building Societies Amendment Act 1987 (1987 No 175).