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Building Societies Act 1965

Dissolution and winding up

115: Dissolution by consent

You could also call this:

“Building society can close if most members agree and follow special rules”

A building society can be dissolved if enough members agree to it. You need three-quarters of the members to say yes, and these members must hold at least two-thirds of the shares in the society. They show they agree by signing a special document called an instrument of dissolution.

This instrument of dissolution is an important paper that must include several things. It needs to list all the society’s debts and assets in detail. It must say how many members the society has and how much money each member has in their account. The document also has to explain how the society will pay back people who have deposited money or lent money to the society. It must describe how the society plans to divide up its money and property. Lastly, it needs to name one or more people who will be in charge of the dissolution process, and how much these people will be paid.

If the society wants to make changes to this document, they can. But they need the same level of agreement from members as they did for the original document.

Once the instrument of dissolution is ready, or if any changes are made to it, it must be officially registered. This is done in the same way that the society’s rules are registered. Once it’s registered, all members of the society must follow what it says.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372359.

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"How to end a building society by following its rules"

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116: Provisions as to dissolution under last 2 preceding sections, or

"Rules for closing down a building society"

Part 8 Dissolution and winding up

115Dissolution by consent

  1. A society may be dissolved by an instrument of dissolution, with the consent of three-fourths of the members, holding not less than two-thirds of the number of shares in the society, testified by their signatures to the instrument of dissolution.

  2. The instrument of dissolution shall set out—

  3. the liabilities and assets of the society, in detail:
    1. the number of members, and the amount standing to their credit in the society's books:
      1. the claims of depositors and other creditors, and the provision to be made for their payment:
        1. the intended appropriation or division of the funds and property of the society:
          1. the names of 1 or more persons to be appointed as trustees for the purposes of the dissolution, and their remuneration.

            1. Alterations in the instrument of dissolution may be made with the like consent, testified in the same manner.

            2. The instrument of dissolution, and all alterations therein, shall be registered in the manner provided by this Act for the registration of rules, and shall be binding on all the members of the society.

            Compare
            • 1908 No 18 s 33(1)(c)
            • Building Societies Act 1962 s 100 (UK)