(1) In this section, unless the context otherwise requires,—
deceased shareholder means a person whose name appears on the list referred to in subsection (1) of section 9 and who has died before 1 April 1968
unit of debenture stock means debenture stock to the par value of $1.50 mentioned in paragraph (b) of subsection (1) of section 8.
(2) This section shall apply to the shares and units of debenture stock allotted or to be allotted, pursuant to section 8 to a deceased shareholder.
(3) The Maori Land Court may, at any time before 1 April 1975, on the application of the Māori Trustee or any person claiming to be interested, determine the persons beneficially entitled to any shares or units of debenture stock of a deceased shareholder and the proportions in which such persons are entitled to hold the same, in the same manner and to the same extent as if the shares or units of debenture stock were beneficial freehold interests in Maori land.
(4) The directors of the company may at any time after 31 March 1975, and before the expiry of the period of 10 years referred to in subsection (1) of section 12, determine the persons beneficially entitled to any shares or units of debenture stock of a deceased shareholder and the proportions in which such persons are entitled to hold the same, in the same manner and to the same extent as if the shares or units of debenture stock were beneficial freehold interests in Maori land.
(5) Any determination made pursuant to subsection (3) shall be duly embodied in an order of the Maori Land Court, and any determination made pursuant to subsection (4) shall be embodied in an instrument in writing under the seal of the company.
(6) An order or instrument created pursuant to subsection (5) shall, notwithstanding anything contained in the articles of association of the company relating to restrictions on the transfer of shares in the company, be dealt with by the company as if it were a duly executed form of transfer of shares or units of debenture stock valid in all respects transferring the shares or units of debenture stock of the deceased shareholder therein mentioned to the persons and in the proportions therein specified:
provided that, notwithstanding the provisions of any such order or instrument as to the entitlement of any person to any shares or units of debenture stock, there shall not be transferred to any person any fractional part of a share or unit (whether by itself or with any whole number of shares or units); and any share or unit which, but for this proviso, would be divided into fractional parts shall be transferred to such of the persons who would be entitled to such fractional parts as the directors, by lot, shall select.
(7) In any case where before 1 April 1975, the Chief Judge of the Maori Land Court may have made an order pursuant to the provisions of section 452 of the Maori Affairs Act 1953 with reference to the beneficial estate or interest of a deceased shareholder held or formerly held by that shareholder in the block then, to give effect to such order, the Registrar shall, under his hand and the seal of the Maori Land Court, issue a certificate specifying the nature of the adjustment to be made by the company to its register of shareholders or its register of holders of debenture stock, and such certificate shall, on presentation to the company, be dealt with by the company, as if the same were an order created pursuant to subsection (5):
provided that no order made by the Chief Judge of the Maori Land Court pursuant to section 452 of the Maori Affairs Act 1953 shall be capable of derogating from any transfer of any share or unit of debenture stock made in good faith and for valuable consideration and lodged with the company before the date of the receipt, by the company, of the certificate relating to such order.
(8) Notwithstanding anything to the contrary in the Estate and Gift Duties Act 1955, shares and units of debenture stock dealt with pursuant to this section shall not, for the purposes of that Act, be deemed to form part of the estate of a deceased shareholder.
Section 12A: inserted, on 17 December 1968, by section 15(1) of the Maori Purposes Act 1968 (1968 No 127).
Section 12A(3): amended, on 1 July 2009, pursuant to section 30(2)(a) of the Māori Trustee Amendment Act 2009 (2009 No 12).
Section 12A(3): amended, on 20 October 1972, by section 13(5) of the Maori Purposes Act 1972 (1972 No 135).
Section 12A(4): amended, on 20 October 1972, by section 13(5) of the Maori Purposes Act 1972 (1972 No 135).
Section 12A(7): amended, on 20 October 1972, by section 13(5) of the Maori Purposes Act 1972 (1972 No 135).