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Financial Markets Conduct Act 2013

Governance of financial products - Governance of debt securities - Meetings of product holders

120: Meetings of product holders

You could also call this:

"Rules for meetings of people who own debt securities"

Illustration for Financial Markets Conduct Act 2013

When you own a debt security, you have the right to meet with other owners. A meeting of debt security owners must be called by the issuer if certain people ask for it in writing. You can ask for a meeting if you are the supervisor, or if you and other owners have a combined value of at least 5% of the debt securities.

If the issuer is a credit union, a meeting can be called if at least 5% of the members who own debt securities ask for it. A meeting can also be called by someone who is authorised by the trust deed or the regulations. The rules for running the meeting and making decisions are set out in the regulations and the trust deed.

The regulations and trust deed say how meetings should be run and how decisions can be made without a meeting, and you can find more information by looking at the regulations. You can also look at the trust deed to see what it says about meetings and decision-making. This is how the law says meetings of debt security owners should be handled.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091100.

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"The supervisor can get expert help to check a company's finances and management."

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121: Supervisor's attendance at meetings of product holders and power to appoint chair, or

"Supervisor's role at meetings with people who own debt securities"

Part 4Governance of financial products
Governance of debt securities: Meetings of product holders

120Meetings of product holders

  1. A meeting of a class of holders of a debt security must be called by the issuer on the written request of—

  2. the supervisor; or
    1. holders of the debt securities that have a combined nominal value of no less than 5% of the nominal value of the debt securities on issue in that class; or
      1. in the case of an issuer that is a credit union, no less than 5% of the number of members of the credit union who hold debt securities on issue in that class; or
        1. a person who is authorised by the trust deed or by the regulations to call the meeting.

          1. Other requirements for meetings, proceedings at meetings, and provision for resolutions in lieu of meetings are governed by the regulations (if any) and the trust deed (if there are no regulations or to the extent that the trust deed is not inconsistent with the regulations).

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