New Zealand Legislation: Acts

54 Issuers to issue certificates evidencing securities

• (1) Every issuer of an equity security, a debt security, a unit, or a participatory security offered to the public shall send, or cause to be sent, to the security holder either the security or a certificate of the security within 1 month of the allotment, or receipt by or on behalf of the issuer of a registrable transfer, of the security.

  (2) Every security or certificate sent to a security holder pursuant to this section shall be executed by or on behalf of the issuer of the security:

  provided that it shall be sufficient compliance with the provisions of this subsection requiring a security or certificate to be executed by any person if a facsimile of the required signature and seal (if any) is reproduced on the security or certificate.

  (3) Nothing in this section applies to an issuer in respect of securities that are approved for transfer under, or in accordance with the rules of, a system that does not require a certificate for the transfer of securities.

  (4) In this section,—

  certificate means a certificate or any other document that properly evidences the nature, ownership, terms, and conditions of a security

  system means—

  • (a) a system authorised or approved under the Securities Transfer Act 1991:

  • (b) a designated settlement system (as defined in section 156M of the Reserve Bank of New Zealand Act 1989).

  Section 54(1): amended, on 1 October 1997, by section 26 of the Securities Amendment Act 1996 (1996 No 100).

  Section 54(3): substituted, on 24 November 2009, by section 10 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

  Section 54(4): substituted, on 24 November 2009, by section 10 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).