12 State enterprise equity bonds

(1)

Notwithstanding any other enactment or rule of law, a company named in Schedule 2 may issue State enterprise equity bonds to any person or persons in accordance with subsection (2), if authorised to do so at any time or times by resolution of the House of Representatives.

(2)

The terms of issue of State enterprise equity bonds shall be as follows:

(a)

the bonds shall not confer any rights to vote at meetings of shareholders:

(b)

the bonds shall be transferable in the manner provided by the rules:

(c)

for the purposes of the Companies Act 1993 and the Financial Markets Conduct Act 2013 the bonds shall be deemed to be ordinary shares, and the holder of any bonds shall be deemed to be a shareholder:

(d)

for the purposes of the Income Tax Act 2007

(i)

the bonds shall be deemed to be ordinary shares and the holder of any bonds shall be deemed to be a shareholder:

(ii)

every sum distributed by a company named in Schedule 2 in any manner and under any name to a holder of bonds shall be deemed to be a dividend for the purposes of subpart CD of the Income Tax Act 2007:

(iii)

no deduction shall be allowed to such a company for any such distribution:

(e)

such other terms as are specified in the authorising resolution or as are determined by the shareholding Ministers for the company issuing the bonds.

Section 12(1): amended (with effect on 1 April 1987), on 1 July 1987, by section 4(1) of the State-Owned Enterprises Amendment Act 1987 (1987 No 117).

Section 12(2)(a): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 12(2)(c): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 12(2)(c): amended, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

Section 12(2)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 12(2)(d)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 12(2)(e): amended (with effect on 1 April 1987), on 1 July 1987, by section 4(2) of the State-Owned Enterprises Amendment Act 1987 (1987 No 117).