New Zealand Legislation: Acts

259 Application of revenues

• (1) The revenues derived from its operations by any Maori incorporation may be applied as follows:

  • (a) generally towards the costs and outgoings involved in doing anything that the incorporation is empowered to do, including any capital works or capital investments, and expenditure of any other kind that would usually be charged in the administration of a trust to capital rather than income:

  • (b) in setting aside reserves for contingencies or for capital expenditure or for expansion in accordance with the objects of the incorporation, or in retaining in an accumulated profit account any portion of the profits that the committee of management thinks it prudent not to distribute to shareholders:

  • (c) in payment, in accordance with subsection (2), of an amount by way of dividend to the shareholders:

  • (d) as authorised by a resolution of the shareholders for such purposes (not being purposes for which money may otherwise be applied under this subsection) as are specified in the resolution.

  (2) No payment made under paragraph (c) or paragraph (d) of subsection (1) shall be made otherwise than from profits (including accumulated profits and realised capital profits), and in accordance with an express resolution or resolutions passed at a general meeting of shareholders.

  (3) The payments made under paragraph (c) or paragraph (d) of subsection (1) in any financial year shall not exceed the amount determined by the committee of management as being available in that financial year for the purposes of that paragraph, after prudent and adequate provision has been made for the payment or reservation of other amounts that are properly to be paid or reserved from the revenues of the incorporation, including the reservation of an adequate amount for the meeting of claims established in respect of unclaimed dividends that have become the absolute property of the incorporation under section 267.

  (4) Upon the passing by a general meeting of shareholders of any lawful resolution authorising the payment of any amount under paragraph (c) or paragraph (d) of subsection (1), the amount specified in the resolution shall be deemed to be appropriated to the purpose or purposes specified, and shall be deemed to be held by the incorporation in trust to make payments accordingly to the shareholders in their respective shares or to such other persons as may be entitled to receive payment, and the necessary entries shall be made in the incorporation’s books of account.

  Compare: 1967 No 124 s 46(1)–(3)