New Zealand Legislation: Acts

4 Purpose

• The purpose of this Act is to—

  • (a) allow an amalgamation of The New Zealand Co-operative Dairy Company Limited, Kiwi Co-operative Dairies Limited, The Tatua Co-operative Dairy Company Limited, Westland Co-operative Dairy Co Limited, and Fonterra Co-operative Group Limited, and the resulting ownership by new co-op of all the shares in the New Zealand Dairy Board, by giving authorisations under the Commerce Act 1986; and

  • (b) provide for the transition of the New Zealand Dairy Board to a wholly-owned subsidiary of new co-op and its conversion into a company 12 months after the commencement of this Part; and

  • (c) provide for the buy-out of shares in the New Zealand Dairy Board held by—

    • (i) The Tatua Co-operative Dairy Company Limited and Westland Co-operative Dairy Co Limited if they do not wish to participate in the amalgamation; and

    • (ii) New Zealands Premier Dairy Cooperative Limited; and

  • (d) remove restrictions on the export of dairy products except for exports to designated markets; and

  • (e) provide that Livestock Improvement Corporation Limited is established as a co-operative company that is owned by purchasers of its goods and services and provide for regulation of the core database; and

  • (f) promote the efficient operation of dairy markets in New Zealand by regulating the activities of new co-op to ensure New Zealand markets for dairy goods and services are contestable; and

  • (g) provide for transitional arrangements following the removal of restrictions on the export of dairy products; and

  • (h) make provision in relation to certain taxation consequences relating to the amalgamation; and

  • (i) require co-operative dairy companies to enable supplying shareholders to transfer their shares to sharemilkers by agreement.