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Building Societies Act 1965

Conversion to company

113H: Prohibition on issue of terminating or bonus balloting shares in company to which society converts

You could also call this:

“New company from building society can't give out special or prize-winning shares”

When a building society changes into a company, there are some rules about the kinds of shares the new company can give out. You can’t get shares that end after a certain time or when something specific happens. You also can’t get shares that let you take part in a draw to win prizes.

But don’t worry, the new company can still give out all the other types of shares that normal companies are allowed to give. These are the kinds of shares that companies set up under the Companies Act 1993 can offer.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372328.

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Money and consumer rights > Banking and loans Housing and property > Buying and selling homes Business > Industry rules
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113G: Liability of members of company, or

"Members' money at risk stays the same when a building society becomes a company"

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113I: Preservation of rights of terminating shareholders, or

"Rules for protecting certain shareholders when a building society becomes a company"

Part 7A Conversion to company

113HProhibition on issue of terminating or bonus balloting shares in company to which society converts

  1. No shares shall be issued in the capital of a company into which a society has become converted pursuant to this Part that—

  2. are to terminate at the end of given periods or on the attainment of specified results; or
    1. entitle the holder to participate in a ballot for the purpose of ascertaining which of the holders of such shares are entitled to receive any prizes arising in respect of those shares.

      1. Nothing in subsection (1) prevents a company into which a society has become converted from issuing any shares that a company incorporated under the Companies Act 1993 is authorised or permitted to issue.

      Notes
      • Section 113H: inserted, on , by section 26 of the Building Societies Amendment Act 1987 (1987 No 175).
      • Section 113H(2): replaced, on , by section 14 of the Companies Amendment Act 2013 (2013 No 111).