Building Societies Act 1965

Miscellaneous provisions

124: Compulsory cancellation or suspension of registration

You could also call this:

"The government can stop a building society from operating if it breaks rules"

The Registrar can cancel or suspend a society's registration for certain reasons. These reasons include if the society got its certificate by cheating or by mistake, if it's doing something illegal, if it keeps breaking the rules even after being warned, or if it no longer exists.

If the Registrar wants to cancel or suspend a society's registration, they must do it in writing. When a registration is suspended, it's usually for up to 3 months at first, but this can be extended by up to 3 months at a time.

Before cancelling or suspending a registration, the Registrar must give the society at least 2 months' notice in writing. The notice will explain why they want to do this. The society can then tell the Registrar why they think this shouldn't happen. If the society wants, they can also ask to speak to the Registrar about it.

When a registration is cancelled or suspended, or if a suspension is extended, the Registrar must tell the public and record it officially.

If a society's registration is cancelled or suspended for more than 6 months, the society can ask the High Court to look at the decision. The court might decide to undo the cancellation or suspension if they think it's fair to do so.

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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=DLM372387.

Topics:

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

123: Inspections and special meetings, or

"Checking a building society's activities and holding special meetings"

125: Cancellation of registration at request of society, or

"How to ask for a society's registration to be cancelled"

Part 9Miscellaneous provisions

124Compulsory cancellation or suspension of registration

Subject to the provisions of this section, the Registrar may cancel or suspend the registration of a society if he or she is satisfied—
that a certificate of incorporation has been obtained for the society by fraud or mistake; or
that the society exists for an illegal purpose; or
that the society has, after notice from the Registrar, contravened any of the provisions of this Act; or
that the society has ceased to exist.

Any cancellation or suspension of registration under this section shall be effected in writing signed by the Registrar.
Where the registration of a society is suspended under this section, the period of suspension shall in the first instance be a period not exceeding 3 months, but may be extended from time to time by not more than 3 months at a time.
Before cancelling or suspending the registration of a society under this section, the Registrar shall give to the society not less than 2 months' notice in writing, specifying briefly the grounds of the proposed cancellation or suspension.
The Registrar shall consider any representations with respect to the proposed cancellation or suspension that may be made to him or her by the society within the said period of 2 months or such further period as he or she may allow, and, if the society so requests, shall afford to it an opportunity of being heard by him or her within such period or further period as aforesaid.
The Registrar shall give public notice of any cancellation or suspension, or any extension of a suspension, under this section and must register the cancellation, suspension, or extension of a suspension.
Where under this section the registration of a society is cancelled, or is suspended for a period exceeding 6 months, the society may appeal to the High Court or a Judge thereof; and on any such appeal the court or Judge, if it or he or she thinks fit and just to do so, may set aside the cancellation or suspension.

Compare

Building Societies Act 1962 s 113 (UK)

Notes

Section 124(1): amended, on 13 January 2020, by section 4(1) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).
Section 124(1)(c): amended, on 13 January 2020, by section 4(2) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).
Section 124(3): amended, on 13 January 2020, by section 4(3) of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).
Section 124(6): amended, on 20 September 2007, by section 7 of the Building Societies Amendment Act 2007 (2007 No 43).
Section 124(7): amended, on 1 April 1980, pursuant to section 12 of the Judicature Amendment Act 1979 (1979 No 124).