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Financial Markets Conduct Act 2013

Financial reporting - Overview, application, and interpretation

452: Company that issues equity securities not FMC reporting entity if fewer than 50 shareholders

You could also call this:

"Small companies with fewer than 50 shareholders don't have to report to the government about their shares."

Illustration for Financial Markets Conduct Act 2013

If you have a company that issues equity securities, it is not an FMC reporting entity if it has fewer than 50 shareholders or fewer than 50 parcels of shares that are voting products. You are considered a shareholder if you hold a voting product, which is defined in this section as a shareholder holding a voting product. This rule applies if the company would otherwise be an FMC reporting entity only because it issues equity securities that are both voting products and regulated products, as outlined in section 451(1)(a) and according to the Companies Act 1993.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702244.

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Part 7Financial reporting
Overview, application, and interpretation

452Company that issues equity securities not FMC reporting entity if fewer than 50 shareholders

  1. A company within the meaning of section 2(1) of the Companies Act 1993 is not an FMC reporting entity under section 451(1)(a) if it—

  2. has fewer than 50 shareholders or fewer than 50 parcels of shares that are voting products; and
    1. would, but for this section, be an FMC reporting entity by reason only of being an issuer of equity securities that are both voting products and regulated products.

      1. In this section, shareholder means a shareholder holding a voting product.

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      Notes
      • Section 452: replaced, on , by section 48 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
      • Section 452(1): amended, on , by section 46 of the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 (2019 No 46).