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Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Amalgamation

42: Licensed deposit taker must obtain Bank’s approval before amalgamation

You could also call this:

"Get Bank approval before merging with another company"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must get approval from the Bank before you amalgamate with another person. This means you need to get permission before you join with another entity to become one entity, whether this happens under Part 13 of the Companies Act 1993 or another similar law. You can find more information about this law at the Companies Act 1993 website.

When you amalgamate, the single entity that results is called the amalgamated entity. This is the new entity that will exist after the amalgamation is complete.

If you are an overseas licensed deposit taker, you do not need to follow this rule, instead you should look at section 43 for more information.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS493081.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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41: Licensed deposit taker must obtain Bank’s approval before entering into significant transaction, or

"Get Bank approval before making big business changes"

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43: Overseas licensed deposit taker must notify Bank if it amalgamates with another person, or

"Tell the Bank if your overseas deposit taking company merges with another company"

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Amalgamation

42Licensed deposit taker must obtain Bank’s approval before amalgamation

  1. A licensed deposit taker must obtain the approval of the Bank before the deposit taker amalgamates with another person (whether it occurs under Part 13 of the Companies Act 1993 or any other law of similar effect that results in 2 or more entities amalgamating and continuing as 1 entity).

  2. In this subpart, amalgamated entity means the single entity that is proposed to result from and continue after a proposed amalgamation.

  3. Subsection (1) does not apply in relation to an overseas licensed deposit taker (see instead section 43).