Part 7A Conversion to company
113PProhibition of bonus ballots after expiry of 3 years from conversion date
No company into which a society has become converted in accordance with this Part, and no person acting on behalf of any such company, shall, at any time after the expiry of 3 years from the conversion date, conduct any ballot for the purpose of ascertaining the entitlement of any person to receive prizes.
Every company that, at any time after its conversion from a society pursuant to this Part, is under a liability to any person to hold ballots for the purpose of ascertaining the entitlement of any person to receive prizes shall, before the expiry of 3 years from the conversion date, except to the extent that such liabilities may have been otherwise discharged, discharge those liabilities in accordance with regulations made under section 113Q.
Every company, and every person acting on behalf of a company, commits an offence and is liable on conviction to a fine not exceeding $1,000 who—
- conducts any ballot in contravention of subsection (1); or
- fails to comply with the provisions of subsection (2).
Notes
- Section 113P: inserted, on , by section 26 of the Building Societies Amendment Act 1987 (1987 No 175).
- Section 113P(3): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).