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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Disclosure of interests of substantial product holders in listed issuers - Substantial holding disclosure obligations

277: Substantial product holders must disclose if subsequent movement of 1% or more in holdings

You could also call this:

"Big shareholders must disclose share changes of 1% or more"

Illustration for Financial Markets Conduct Act 2013

If you have a lot of shares in a company, you are called a substantial product holder. You must tell people if you buy or sell 1% or more of your shares. You work out if you have 1% or more by using a formula that is explained in section 274(4). If you buy or sell shares and this changes by 1% or more, you must let people know as soon as you can.

When you tell people about the change in your shares, you must follow the rules in sections 280 and 281. You must do this as soon as you know, or should know, that you have bought or sold 1% or more of your shares. This means you have to be honest and let people know what is happening with your shares.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091403.

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276: Persons must disclose if begin to have substantial holding, or

"Tell the company if you own a big part of it"

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278: Substantial product holders must disclose if subsequent changes in nature of relevant interests, or

"Big company shareholders must tell others about changes in their company interests"

Part 5Dealing in financial products on markets
Disclosure of interests of substantial product holders in listed issuers: Substantial holding disclosure obligations

277Substantial product holders must disclose if subsequent movement of 1% or more in holdings

  1. A substantial product holder in a listed issuer must disclose, in accordance with sections 280 and 281, any movement of 1% or more in the substantial holding.

  2. There is a movement of 1% or more in a substantial holding if—

  3. there is a change in the number of financial products held by the substantial product holder (where number held has the same meaning as in section 274(4)); and
    1. the percentage worked out using the formula in section 274(4) increases or decreases by 1 or more percentage points from the percentage last disclosed under this subpart in relation to the substantial holding.

      1. The disclosure must be given as soon as the person knows, or ought reasonably to know, that that movement has occurred.

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