Building Societies Act 1965

Conversion to company

113P: Prohibition of bonus ballots after expiry of 3 years from conversion date

You could also call this:

“No more prize draws three years after a building society becomes a company”

After a building society becomes a company, it can’t hold prize draws (or ballots) forever. Here’s what you need to know:

When a building society changes into a company, it has three years to finish up any prize draws it promised to do. After those three years are up, the company isn’t allowed to do any more prize draws to give out prizes.

If the company still owes people prize draws, it must finish them all before the three years are over. There are special rules about how to do this properly.

If a company breaks these rules by doing prize draws after the three years, or if it doesn’t finish the prize draws it owes people in time, it’s breaking the law. The company, or anyone acting for the company, could be fined up to $1,000 for not following these rules.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372348.


Previous

113O: Retention of approved status for accepting deposits in home ownership or farm ownership accounts, or

"Companies can still accept special home and farm savings after changing from a building society"


Next

113Q: Regulations for purposes of this Part, or

"Rules for changing building societies into companies"

Part 7A Conversion to company

113PProhibition of bonus ballots after expiry of 3 years from conversion date

  1. 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.

  2. 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.

  3. 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—

  4. conducts any ballot in contravention of subsection (1); or
    1. 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).