Building Societies Act 1965

Dissolution and winding up

116: Provisions as to dissolution under last 2 preceding sections

You could also call this:

"Rules for closing down a building society"

When a building society is dissolved under section 114 or 115, some special rules apply. The law continues to treat the people in charge of closing the society as if they were the society's board of directors.

The people handling the dissolution must send a report to the Registrar within 28 days of finishing the process. This report needs to show how much money and property the society had when it started closing down, and what happened to it all. If they don't send this report, they can be fined $10 for each day they're late.

There are also rules about dissolving a society to join with another one. You need the Registrar's permission to do this. If a plan for closing down a society includes members getting investments in another society instead of their money back, this usually means they're trying to join with that other society.

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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=DLM372360.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homes

115: Dissolution by consent, or

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

117: Dissolution on award of Registrar, or

"The rule about closing building societies by the Registrar's decision no longer exists"

Part 8Dissolution and winding up

116Provisions as to dissolution under last 2 preceding sections

The provisions of this section shall have effect in relation to the dissolution of a society under section 114 or section 115.
The provisions of this Act shall continue to apply in relation to the society as if the liquidators or other persons conducting its dissolution, or, as the case may be, the trustees appointed under the instrument of dissolution, were the board of directors of the society.
Such liquidators, trustees, or other persons as aforesaid shall, within 28 days from the termination of the dissolution, send to the Registrar for registration an account and statement of financial position signed and certified by them as correct, and showing the assets and liabilities of the society at the commencement of the dissolution and the way in which those assets and liabilities have been applied and discharged; and if they fail to do so each of them shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10 for every day during which the default has continued.
Repealed
Except with the consent of the Registrar—
no resolution, instrument of dissolution, or other proceeding for the dissolution of a society; and
no alteration of an instrument of dissolution—

Any provision in a resolution or document that members of a society proposed to be dissolved shall accept investments in another society, whether in shares, deposits, or any other form, in or towards satisfaction of their rights in the dissolution shall be conclusive evidence of such a purpose as is mentioned in subsection (5).

Compare

Building Societies Act 1962 s 102 (UK)

Notes

Section 116(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Section 116(3): amended, on 20 September 2007, by section 7 of the Building Societies Amendment Act 2007 (2007 No 43).
Section 116(3): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).
Section 116(4): repealed, on 20 September 2007, by section 7 of the Building Societies Amendment Act 2007 (2007 No 43).