Building Societies Regulations 1989

Reprint
as at 1 December 2002

Coat of Arms of New Zealand

Building Societies Regulations 1989

(SR 1989/33)

Paul Reeves, Governor-General

Order in Council

At Wellington this 20th day of February 1989

Present:
His Excellency the Governor-General in Council

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

These regulations are administered by the Ministry of Economic Development.

Pursuant to sections 106(2), 113Q, and 137 of the Building Societies Act 1965 (as amended by the Building Societies Amendment Act 1987), His Excellency the Governor-General, acting by and with the advice and consent of the Executive Council, hereby makes the following regulations.

Contents

1 Title, commencement, and application

2 Interpretation

Part 1
General provisions

Incorporation of society

3 Application for certificate of incorporation

Alteration of rules

4 Registration of alteration of rules

Bonus ballots and bonus balloting shares

5 Bonus balloting shares fund

6 Maximum distribution by bonus ballot

7 Ordinary bonus ballots

8 Special bonus ballots

9 Disqualification from participating in bonus ballots

10 Rights of bonus balloting shareholders

11 Conduct of bonus balloting business

12 Registrar may require actuary's certificate

13 Application of regulations relating to bonus ballots to company into which society becomes converted

Miscellaneous provisions

14 Value of land owned by society [Revoked]

15 Service of notices and documents

16 Fees [Revoked]

Part 2
Financial statements and annual returns

General provisions

17 Interpretation of terms used in this Part

18 Financial statements required

19 Requirement for consolidated financial statements

20 Amounts for preceding financial year to be shown

21 Statement of accounting policies

22 Notes to financial statements

Revenue and appropriation account

23 Matters to be contained in revenue and appropriation account

24 Matters to be shown relating to appropriations of earnings

Statement of financial position

25 Fixed capital and reserves

26 Minority interests

27 Deferred taxation

28 Term liabilities

29 Current liabilities

30 Fixed assets

31 Investments

32 Loans

33 Current assets

34 Intangible assets

35 Other information

36 Commitments and contingent liabilities

37 Currency conventions

Statement attached to terminating group account

38 Statement attached to terminating group account

Annual return

39 Form of annual return

40 Auditors' report on annual return

Revocations

41 Revocations

Schedule 1

Schedule 2
Rates of depreciation on improvements

[Revoked]

Schedule 3
Fees payable to the Registrar

[Revoked]

Schedule 4
Statement to be attached to each annual terminating group account

Schedule 5
Annual return

Schedule 6
Regulations revoked

Regulations

1 Title, commencement, and application

  • (1) These regulations may be cited as the Building Societies Regulations 1989.

    (2) These regulations shall come into force on 1 April 1989.

    (3) Part 2 shall apply to financial statements and annual returns prepared by a building society in respect of accounting periods ending on or after 1 April 1989.

2 Interpretation

  • In these regulations, unless the context otherwise requires,—

    balloting unit, in relation to any bonus ballot authorised by the Registrar pursuant to regulation 8, means each complete dollar held in a bonus balloting share account

    bonus balloting share account means an account held by a person with a society, being an account in which the bonus balloting shares of that person may be aggregated and identified by a unique number given to that account

    ordinary bonus ballot means a bonus ballot—

    • (a) in which numbers from those numbers given to bonus balloting share accounts are drawn to ascertain the prize winners; and

    • (b) in which the amount of each cash prize is proportional to the amount standing to the credit of the prize winner's bonus balloting share account at the end of the month preceding the month in which the bonus ballot is drawn

    special bonus ballot means a bonus ballot in which balloting units are drawn to ascertain the prize winners.

Part 1
General provisions

Incorporation of society

3 Application for certificate of incorporation

  • (1) On the establishment of a building society the intended secretary or other officer of the society shall complete and send to the Registrar an application in form 1 of Schedule 1, together with—

    • (a) 4 printed and signed copies of the rules; and

    • (b) a completed rules check sheet, in form 3 of Schedule 1, in which there shall be specified in the third column, opposite each matter referred to in the second column, the number of the rule providing for the matter.

    (2) Every such application shall be accompanied by the fee prescribed for the first registration of the rules of a society.

Alteration of rules

4 Registration of alteration of rules

  • (1) When a society alters its rules by special resolution it shall send to the Registrar an application for registration in form 2 of Schedule 1, together with—

    • (a) 4 printed copies of the alteration; or

    • (b) in the case of the rescission of a rule, 4 copies of the special resolution.

    (2) The application shall be signed by the secretary or some other officer of the society.

    (3) The copies of the alteration or of the resolution, as the case may be, shall be signed by a director and the secretary of the society.

    (4) Where the alteration of rules is a substitution of an entire set of rules for the existing set of rules, the society shall also send to the Registrar, with the application, a completed rules check sheet, in form 3 of Schedule 1, in which there shall be specified in the third column, opposite each matter referred to in the second column, the number of the rule providing for that matter.

    (5) Every such application shall be accompanied by the appropriate prescribed fee.

Bonus ballots and bonus balloting shares

5 Bonus balloting shares fund

  • For the purposes of these regulations and section 31A of the Act, the bonus balloting shares fund of any society shall be the total paid in respect of any bonus balloting shares together with any vested or unvested earnings of the fund which have not been paid out.

6 Maximum distribution by bonus ballot

  • (1) For the purpose of determining the maximum amount that may be distributed by bonus ballot in any financial year, the total fund referred to in section 31A(4)(a) of the Act shall be the figure arrived at by averaging the amounts of the bonus balloting shares fund on the last day of each month of the financial year.

    (2) The maximum amount that may be distributed as any one cash prize in a bonus ballot shall not exceed $10,000.

    (3) Except with the consent in writing of the Registrar, the amount of any cash prize in an ordinary bonus ballot shall not exceed the amount standing as a credit in the prizewinner's bonus balloting share account, the number of which was a successful participant in the ballot.

7 Ordinary bonus ballots

  • (1) All bonus balloting shares held by a member of a society shall be accounted for and identified in a bonus balloting share account.

    (2) A member of a society may hold more than 1 bonus balloting share account, each having a unique number.

    (3) Individual bonus balloting share account numbers (and not clusters of numbers) shall be drawn to ascertain the prizewinners of any ordinary bonus ballot.

    (4) Every bonus balloting share account number shall participate in all ordinary bonus ballots except where a society's rules otherwise provide.

    (5) Subject to any provision in a society's rules, a society may for the purposes of an ordinary bonus ballot and upon the request in writing of a member holding 2 or more bonus balloting share accounts, aggregate all or any of those accounts in such a manner as to ensure that the aggregated accounts are represented in the ballot by one unique number.

    (6) No bonus balloting share account having a nil balance shall be included in any ordinary bonus ballot.

    (7) Not less that 90% of the amount available by way of cash prizes in respect of bonus ballots shall be distributed pursuant to the conduct of ordinary bonus ballots.

8 Special bonus ballots

  • (1) The Registrar may authorise in writing, either generally or specifically, any society to conduct a special bonus ballot.

    (2) Every such authority from the Registrar shall be subject to such conditions as the Registrar may from time to time impose.

9 Disqualification from participating in bonus ballots

  • Any provision in a society's rules disqualifying any bonus balloting share account or balloting unit from participating in a bonus ballot because share subscriptions or other payments have not been maintained shall be valid only if—

    • (a) the shareholder is advised as soon as the account becomes ineligible for ballot participation; and

    • (b) the shareholder is entitled to withdraw the amount in the disqualified account forthwith.

10 Rights of bonus balloting shareholders

  • (1) At the time a person becomes a holder of bonus balloting shares, the society shall give to that person a concise written statement of the conditions of that person's investment, including the dividend rate or rates payable, the percentage of the fund to be distributed by ballot, the member's withdrawal rights, and a general description of the way any dividends or interest or prizes should be treated for the purposes of any taxation liability.

    (2) All subscriptions in respect of bonus balloting shares that have been credited to any bonus balloting share account shall be withdrawable after a term not exceeding 5 years from the date on which the account was opened.

11 Conduct of bonus balloting business

  • Subject to these regulations, every society shall conduct its bonus balloting business in each financial year in such a manner as (after bringing all expenditure for the year to account) will provide a surplus sufficient to meet the society's present and potential commitments to its bonus balloting shareholders in respect of that year.

12 Registrar may require actuary's certificate

  • The Registrar may, at any time by notice in writing to a society that issues bonus balloting shares, call upon that society to supply to the Registrar a certificate from an actuary certifying that—

    • (a) all eligible bonus balloting share accounts and balloting units have an equal chance of winning a prize; and

    • (b) such reasonable procedures are in existence as to ensure that the total amount permitted to be balloted will not be exceeded.

13 Application of regulations relating to bonus ballots to company into which society becomes converted

  • Subject to the provisions of Part 7A of the Act, regulations 5 to 12 shall apply, with such modifications as may be necessary, to any company into which a society becomes converted pursuant to Part 7A of the Act and which is under a liability to any person to hold ballots for the purpose of determining entitlements to receive prizes as if—

    • (a) every reference to a society were a reference to a company:

    • (b) every reference to a bonus balloting share were a reference to a bonus balloting security:

    • (c) every reference to a shareholder or a member were a reference to a holder of a bonus balloting security:

    • (d) every reference to the rules of a society were a reference to the terms of issue of any bonus balloting security.

Miscellaneous provisions

14 Value of land owned by society

  • [Revoked]

    Regulation 14: revoked, on 20 November 1989, by section 2(2) of the Building Societies Amendment Act 1989 (1989 No 111).

15 Service of notices and documents

  • (1) Except as otherwise provided in the Act or (in respect of members of a society) in the society's rules, any notice or other document required by the Act or these regulations to be given to, or served on, any person may be served on that person by delivering it to that person personally, or by sending it by post addressed to that person at that person's last known address within New Zealand.

    (2) Any notice or document so sent by post shall be deemed to have been served at the expiry of the fourth working day after the date on which the notice or document was posted.

16 Fees

  • [Revoked]

    Regulation 16: revoked, on 1 April 1996, by regulation 2 of the Building Societies Regulations 1989, Amendment No 1 (SR 1996/39).

Part 2
Financial statements and annual returns

General provisions

17 Interpretation of terms used in this Part

  • (1) In this Part, unless the context otherwise requires,—

    current assets—

    • (a) means—

      • (i) cash; and

      • (ii) assets—

        • (A) which are held for the purpose of being available for conversion into cash or for consumption in the course of production of other current assets; and

        • (B) which are expected to be converted into cash, or consumed, within a period not exceeding 1 year; and

    • (b) includes—

      • (i) amounts paid in respect of services expected to be supplied within a period not exceeding 1 year; and

      • (ii) any other asset regarded as a current asset according to generally accepted accounting principles

    consolidated financial statements means the financial statements of the group that present, without regard to the legal boundaries of the separate entities comprising the group, the assets, liabilities, revenues, and expenses of the group

    current liabilities means liabilities payable, or expected to be payable within 1 year, and includes—

    • (a) provisions for taxation and dividends, so payable or expected to be so payable; and

    • (b) amounts received in respect of services to be supplied; and

    • (c) any other liability regarded as a current liability according to generally accepted accounting principles

    deferred taxation means income tax attributable to the differences between—

    • (a) the aggregate of operating profit, other income, and extraordinary items, for any period (but before charging or crediting any amounts in respect of either current or deferred income tax); and

    • (b) the amount upon which current income tax will be assessed; being differences which result from the inclusion of items of income and expenditure in computations of the amount upon which current income tax will be assessed in periods different from those in which they are dealt with in the revenue and appropriation account

    deposit means any money deposited with a society, and includes any sum paid to a society in consideration of the issue of any debenture, deposit note, or other document acknowledging the indebtedness of the society to the holder

    equity capital, in relation to any entity, means its issued share capital excluding any part which, neither as respects dividends nor as respects capital, carries any right to participate in the assets of the entity beyond a specified amount in a distribution

    equity method of accounting means a method of accounting relating to the holding by a body corporate of equity capital in another body corporate whereby, in addition to any dividends declared by the other body, a proportion of the retained profits or losses of the other body is taken to be profits or losses of the first-mentioned body

    equity security has the same meaning as in section 2 of the Securities Act 1978

    financial statements means the financial statements required in respect of a society by regulations 18 and 19

    fixed assets includes land, buildings, machinery, and equipment, but does not include a current asset, an intangible asset, a loan, or an investment

    fixed capital share, in relation to any society,—

    • (a) means any security that—

      • (i) carries the right to payment of a dividend, or on which interest is payable from the annual surplus of the society; and

      • (ii) is irredeemable, or redeemable at the option of the society; and

      • (iii) participates in the assets of the society on its winding up after all other liabilities and obligations have been met; and

    • (b) includes—

      • (i) any renewal or variation of the terms or conditions of any existing fixed capital share; and

      • (ii) any security that is declared by the Governor-General, by Order in Council, to be a fixed capital share for the purposes of these regulations

    group, in relation to a society, means the society and its subsidiaries and the subsidiaries of those subsidiaries

    holding company has the same meaning as in section 158 of the Companies Act 1955

    intangible assets—

    • (a) includes goodwill, patents, trade marks, or any asset of a similar nature to the extent that they have not been amortised or written down; but

    • (b) does not include items of deferred expenditure arising from the costs incurred in offering and issuing securities or discharging the obligations due to holders of securities

    investment means any security owned that is not a current asset

    monetary assets means cash, bank balances, amounts receivable at any time (less provisions, if appropriate, for income yet to mature and for doubtful debts), and any securities that are current assets

    reserves includes all amounts (whether realised or unrealised) that are not set aside for the specific purpose of meeting liabilities owing or to become owing to identified classes of persons or arising or to arise from particular events

    security has the same meaning as in section 2 of the Securities Act 1978

    subsidiary has the same meaning as in section 158 of the Companies Act 1955

    term liability means any liability other than a current liability, a contingent liability, or deferred taxation.

    (2) In this Part, a body corporate is associated with another body corporate if that other body corporate—

    • (a) has adopted the equity method of accounting in relation to its holding of equity capital of the first-mentioned body corporate; or

    • (b) holds not less than one-fifth, but not more than one-half, of the equity capital of the first-mentioned body corporate,—

    and associated body corporate has a corresponding meaning.

    (3) In this Part, a body corporate is related to another body corporate if—

    • (a) the other body is its holding company or subsidiary; or

    • (b) there is another body corporate to which both bodies are related by virtue of paragraph (a),—

    and related body corporate has a corresponding meaning.

18 Financial statements required

  • (1) Every society shall, not later than 4 months after the end of each financial year, prepare the following financial statements:

    • (a) a revenue and appropriation account for the financial year that—

      • (i) gives a true and fair view of the society's income and expenditure for the financial year; and

    • (b) a statement of financial position as at the end of that financial year that—

      • (i) gives a true and fair view of the state of the society's affairs as at the end of its financial year; and

    • (c) a statement of cash flows for the financial year giving a true and fair view of those cash flows; and

    • (d) such other financial statements in respect of the financial year as are required to ensure that a true and fair view is given of—

      • (i) the financial position of the society as at the end of its financial year; and

      • (ii) the activities of the society during that financial year.

    (2) Nothing in this regulation limits the information that may be included in the financial statements or in the notes to those financial statements.

    Regulation 18(1)(b): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

19 Requirement for consolidated financial statements

  • If any society conducts any of its business through a subsidiary, the society shall not be required to produce the statements referred to in paragraph (c) or paragraph (d) of regulation 18, but shall instead prepare, in addition to its own revenue and appropriation account and statement of financial position, consolidated financial statements comprising the statements required by paragraphs (a) to (d) of regulation 18.

    Regulation 19: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

20 Amounts for preceding financial year to be shown

  • There shall be shown for every item in each financial statement the comparative figures for the preceding financial year.

21 Statement of accounting policies

  • The financial statements shall include a statement of all accounting policies (stating the basis of accounting used) and of any changes in those accounting policies from the preceding financial year.

22 Notes to financial statements

  • Any item that is required to be contained in the financial statements may instead be shown by way of a note to the accounts if to do so would more appropriately ensure that a true and fair view of the society's activities and financial position is given.

Revenue and appropriation account

23 Matters to be contained in revenue and appropriation account

  • Each revenue and appropriation account shall state the following matters:

    • (a) gross income received during the year from—

      • (i) loans (both secured and unsecured):

      • (ii) investments:

      • (iii) other sources (separately shown if material):

    • (b) cost of funds incurred during the year in respect of—

      • (i) dividends paid or accrued on shares other than fixed capital shares:

      • (ii) interest on deposits and other borrowed funds:

    • (c) the amount of audit fees and expenses:

    • (d) the aggregate of fees and other remuneration paid to directors:

    • (e) total leasing and renting expense:

    • (f) the amount of any foreign exchange gains or losses, distinguishing between realised and unrealised gains or losses:

    • (g) the amount of any intangible assets written off during the year:

    • (h) the amount of depreciation charged during the year:

    • (i) the amortisation charge in respect of any other assets (if material):

    • (j) other expenses:

    • (k) the amount and a description of each category of abnormal items:

    • (l) the net profit or loss before taxation:

    • (m) the amount provided for, or credited by way of, taxation; and a brief explanation of any difference between this amount and the amount that would need to be provided for, or would be credited by way of, taxation if the whole of the profit or loss referred to in paragraph (l) were taxed at the standard rate applicable to building societies:

    • (n) the amount and a description of each category of extraordinary items (net of taxation):

    • (o) the net profit and loss after taking account of taxation and extraordinary items:

    • (p) if the equity method of accounting has been used, profits and losses that have resulted from using that method:

    • (q) such part of the total required by paragraph (o) as is attributable to persons who are not members of the group and who hold equity securities issued by subsidiaries of the society.

24 Matters to be shown relating to appropriations of earnings

  • Each revenue and appropriation account dealing with appropriations of earnings shall state the following matters:

    • (a) the opening balance of retained earnings:

    • (b) any adjustment of retained earnings relating to any preceding financial year:

    • (c) transfers to and from any reserve account:

    • (d) distributions of earnings by way of dividends in respect of fixed capital shares, showing separately the amount of dividends in respect of each class of shares:

    • (e) the closing balance of retained earnings, identifying separately, if the equity method of accounting has been used, that portion of the closing balance of retained earnings that relates to associated bodies corporate.

Statement of financial position

  • Heading: substituted, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

25 Fixed capital and reserves

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of fixed capital and reserves:

    • (b) in respect of each class of fixed capital share—

      • (i) a brief description of the shares, together with a statement of any voting rights, predetermined dividend rate, and the conversion rights relating to the shares:

      • (ii) the number of fixed capital shares allotted and still outstanding, the amounts credited as paid up in respect of the shares, and details of any changes in that number or those amounts that occurred during the financial year:

      • (iii) the total nominal value of fixed capital shares in each class that have not been allotted, and, if there are any restrictions upon allotment, particulars of those restrictions:

    • (c) the nature and amount of each capital and revenue reserve (showing separately the amount of reserves or other surpluses arising from any revaluation of assets, and the amount of such reserves relating to associated bodies corporate); and details of changes in each reserve during the financial year:

    • (d) the amount of any cumulative dividends in respect of fixed capital shares that are in arrears.

    Regulation 25: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

26 Minority interests

  • Each statement of financial position shall state the amount of capital and reserves attributable to equity securities that—

    • (a) have been issued by subsidiaries of the society; and

    • (b) are not held by members of the group.

    Regulation 26: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

27 Deferred taxation

  • Each statement of financial position shall state the amount of any provision for deferred taxation.

    Regulation 27: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

28 Term liabilities

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of term liabilities:

    • (b) the amounts of term liabilities owing to each of the following classes of persons (where material):

      • (i) associated bodies corporate:

      • (ii) related bodies corporate:

      • (iii) directors:

    • (c) the total of securities that are redeemable at the end of a contractual period that is to expire at any time after the first anniversary of the statement of financial position date:

    • (d) an analysis of the term liabilities by annual maturity, showing in respect of each financial year in which term liabilities are repayable, the amounts payable in that year together with a summary of the interest rates on those amounts (where practicable, in the form of a weighted average interest rate) for that year:

    • (e) the amount of the term liabilities that are secured and a brief description of the nature of the security.

    Regulation 28: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

    Regulation 28(c): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

29 Current liabilities

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of current liabilities:

    • (b) in addition (as separate items), such of the following amounts included within that aggregate amount as are material:

      • (i) the total of trade accounts payable:

      • (ii) the total of bank loans and overdraft:

      • (iii) the total of securities that are redeemable during a contractual period that is to expire during the financial year that begins on the day after the statement of financial position date:

      • (iv) the total of provisions for taxation:

      • (v) the total of provisions for dividends on fixed capital shares:

      • (vi) the total of interest accrued on borrowed funds and dividends on shares other than fixed capital shares (except where such amounts are included elsewhere in the financial statements):

      • (vii) the amount of deferred income (by category) not yet charged to the revenue and appropriation account:

      • (viii) the amount of each other category of current liability (and a description of those amounts and categories):

      • (ix) that portion of term liabilities which falls due for repayment during the financial year that begins on the day after the statement of financial position date:

    • (c) the amount (where material) of current liabilities owing to—

      • (i) associated bodies corporate:

      • (ii) related bodies corporate:

      • (iii) directors:

    • (d) the amount of the current liabilities that are secured, and a brief description of the nature of the security.

    Regulation 29: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

    Regulation 29(b)(iii): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

    Regulation 29(b)(ix): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

30 Fixed assets

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of fixed assets:

    • (b) a classification of the fixed assets into the following categories and, in respect of each category, the basis or bases of valuation, the aggregate amount on each basis, and accumulated depreciation shown as a deduction from each aggregate amount:

      • (i) freehold land and buildings:

      • (ii) leasehold land and buildings:

      • (iii) other fixed assets:

    • (c) a brief description of the assets to which paragraph (b)(iii) relates:

    • (d) the aggregate of the latest government valuations of land and buildings; and the cost of any additions to land and buildings subsequent to the relevant valuation.

    Regulation 30: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

31 Investments

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of investments:

    • (b) in addition (as separate items), the following amounts included within the aggregate amount in respect of—

      • (i) the total of investments in subsidiaries (other than in subsidiaries that are incorporated in consolidated financial statements) at cost (less amounts written off) or market values (if ascertainable), whichever is the lesser:

      • (ii) the total of investments in associated bodies corporate at cost (less amounts written off) or market value (if ascertainable), whichever is the lesser; and, if the equity method of accounting has been adopted, shown separately, the amounts attributed to the total of investments in associated bodies corporate through the use of that method of accounting:

      • (iii) the total of investments in related bodies corporate at cost (less amounts written off) or market value (if ascertainable), whichever is the lesser:

      • (iv) where material, the total of securities issued by the Crown or a local authority; and, where this amount is not market value, the total market value:

      • (v) where material, the total of investments in other bodies corporate that are parties to listing agreements with a registered exchange (within the meaning of section 2(1) of the Securities Markets Act 1988) and, where this amount is not market value, the total market value:

      • (vi) the aggregate amount of investments in bank balances and deposits with money market dealers (except where included as current assets):

      • (vii) the total of other investments (separately disclosed and described where material).

    Regulation 31: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

    Regulation 31(b)(v): amended, on 1 December 2002, by section 30 of the Securities Markets Amendment Act 2002 (2002 No 44).

32 Loans

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of secured loans:

    • (b) the aggregate amount of unsecured loans:

    • (c) such parts of the amounts required by paragraphs (a) and (b) as are attributable to loans made to—

      • (i) associated bodies corporate:

      • (ii) related bodies corporate:

      • (iii) directors.

    Regulation 32: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

33 Current assets

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of current assets:

    • (b) in addition (as separate items), such of the amounts included within that aggregate amount as are material and are in respect of—

      • (i) the aggregate amount of cash, bank balances, and deposits with money market dealers:

      • (ii) the amount of securities held, and, where this amount is not market value, the total market value:

      • (iii) the amount of accounts receivable (showing as separate deductions any provisions for income yet to mature and doubtful debts):

      • (iv) the amount of deferred expenditure, showing a brief description of its nature:

      • (v) each other category of current assets (and a description of those categories):

    • (c) in respect of the accounts receivable referred to in paragraph (b)(iii), the amounts owing from—

      • (i) associated bodies corporate:

      • (ii) related bodies corporate:

      • (iii) directors.

    Regulation 33: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

34 Intangible assets

  • Each statement of financial position shall state the following matters:

    • (a) the aggregate amount of intangible assets:

    • (b) in addition (as separate items), such of the amounts included within that aggregate amount as are material and are in respect of—

      • (i) goodwill:

      • (ii) patents and trade marks:

      • (iii) each other category of intangible assets (with a description of those categories).

    Regulation 34: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

35 Other information

  • Each statement of financial position, by way of a note unless otherwise shown, shall contain—

    • (a) a statement showing separately but on a matching basis the amounts of monetary assets receivable, and the amounts of liabilities payable,—

      • (i) at call or not later than 6 months after the date of the statement of financial position:

      • (ii) later than 6 months, but not later than 12 months, after that date:

      • (iii) later than 12 months, but not later than 24 months, after that date:

      • (iv) later than 24 months, but not later than 60 months, after that date:

      • (v) later than 60 months after that date:

    • (b) in respect of such of those monetary assets as are amounts receivable—

      • (i) a statement of the proportion of those assets with repayments in arrears in excess of 3 months:

      • (ii) a statement of the proportion of those assets owed, in aggregate, by the debtors who owe the 6 largest amounts:

    • (c) a statement of the conditions affecting the use of any disclosed but unused credit facilities available to the society.

    Regulation 35: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

    Regulation 35(a)(i): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

36 Commitments and contingent liabilities

  • Unless otherwise included in the financial statements, the following matters shall be stated by way of a note to those financial statements:

    • (a) particulars (including the estimated amount and the period of commitment) of any material commitments for capital expenditure:

    • (b) particulars (including the estimated amount and the period of commitment) of any material commitments in respect of leases and hire purchase agreements:

    • (c) a brief description of each material contingent liability and the estimated amount.

37 Currency conventions

  • Where any amounts have been converted to New Zealand currency for inclusion in a statement of financial position, the following matters shall be stated by way of a note to the financial statements, in respect of each material amount:

    • (a) a description of the amount:

    • (b) a statement as to the currency from which it was converted, and the exchange rate used to convert the amount; and the rate (if known) at which the amount will be settled.

    Regulation 37: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

Statement attached to terminating group account

38 Statement attached to terminating group account

  • (1) In this regulation, terminating group account means the revenue and appropriation account and statement of financial position prepared in respect of each group in a terminating society for the purposes of section 102 of the Act.

    (2) Every terminating society shall, in respect of each terminating group account, complete and attach to the terminating group account a statement in the form specified in Schedule 4.

    Regulation 38(1): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

Annual return

39 Form of annual return

  • (1) The annual return of every society shall be in the form of Schedule 5.

    (2) Where appropriate, the word “Nil” shall be inserted against any heading or against the whole of any section of the annual return.

40 Auditors' report on annual return

  • (1) The auditors shall report on the annual return in accordance with section 106 of the Act, but shall not be required to deal with the matters contained in the sections numbered 1 to 4 of the annual return, as set out in Schedule 5.

    (2) In respect of section 5 of the annual return, the auditors shall also state whether in their opinion—

    • (a) the society's system and procedures for the conduct of bonus ballots are fair and reasonable and are in accordance with the society's rules; and

    • (b) the society has promptly distributed the prizes won.

Revocations

41 Revocations

  • The regulations specified in Schedule 6 are hereby consequentially revoked.

Schedule 1

r 3

Form 1
Application for certificate of incorporation

Section 14, Building Societies Act 1965

To the Registrar of Building Societies

  • 1 I [full name and address], the intended secretary [or other officer] of the [proposed name of society], on behalf of the 20 (or more) persons whose names and addresses are set out below, hereby apply for a certificate of incorporation of the society.

  • 2 I enclose—

    • (a) 4 printed copies of the rules agreed upon by those persons for the government of the society, each copy being signed by those persons and by me:

  • 3 The matters required to be set out in the rules by section 17 of the Building Societies Act 1965 are set out in the enclosed rules, as shown in the rules check sheet.

  • 4 The prescribed fee for the first registration of rules of a society is attached to this application.

  • 5 The names and addresses of the persons whose signatures appear on the enclosed copies of the rules, and on whose behalf this application is made, are as follows:

Names                    Addresses

 

Signature and designation of intended secretary or other officer:

Date:

Address for reply:

Form 2
Application for registration of alteration of rules

r 4

Section 19, Building Societies Act 1965

To the Registrar of Building Societies

  • 1 The [name of society] hereby applies to register an alteration of its rules.

  • 2 The alteration is—

    • *(a) a substitution of an entire set of rules for the existing set of rules:

    • *(b) an alteration of some only of the exiting rules:

    • *(c) a rescission of a rule or rules, without further alteration of the existing rules.

  • 3 Enclosed are 4 printed copies (each signed by a director and the secretary of the society) of—

    • *(a) the substituted set of rules referred to in paragraph 2(a) above:

    • *(b) the alteration referred to in paragraph 2(b) above:

    • *(c) the special resolution effecting the rescission referred to in paragraph 2(c) above.

  • 6 The appropriate prescribed fee for registration of an alteration or rescission of rules is attached to this application.

Signature and designation of secretary or other officer signing on behalf of society:

Date:

*Delete the paragraphs that do not apply.
†Delete if alteration is not a substitution of an entire set of rules for the existing rules.

Form 3
Rules check sheet

rr 3(b), 4(4)

Sections 14, 19, Building Societies Act 1965

(To accompany any application for a certificate of incorporation or for registration of a complete set of rules)

Name of Society:

Section of Act A     Matters required to be provided forNo of rule
17(1)(a) 

Name of the society

Address of registered office

 
(b) 

Manner in which the funds of the society are to be raised

 
(c) 

Classes of shares to be issued

Terms on which shares are to be issued

Terms (if any) on which shares may be withdrawn or surrendered

Manner in which payments for shares are to be made and contributions are to be paid by the members

 
(d)* 

Date on which, or the result on the attainment of which, the society is to terminate or any group is to terminate

Manner in which, on the termination of any group, the residual assets or liabilities are to be dealt with

 
(e) 

Whether preferential shares are to be issued

Limits within which preferential shares are to be issued

 
(h)* 

Manner in which any ballots, tenders, or auctions for advances in terminating groups are to be conducted

Terms and conditions upon and subject to which rights to take up such advances may be exercised or surrendered

 
(i) 

Manner in which losses are to be ascertained and provided for

 
(ka) 

Restrictions or prohibitions on the functions of the society

 
(kb) 

Restrictions or prohibitions on any powers, rights, or authorities of the society

 
(kc) 

Restrictions on the power of the society to borrow money

 
(kd) 

Restrictions on the power of the society to lend money

 
(ke) 

Restrictions on the power of the society to invest money

 
(l) 

Manner in which membership is to cease

 
(m) 

Manner of remunerating auditors

Manner of appointing, remunerating, and removing directors

Manner of appointing, remunerating, and removing other officers

 
(n) 

Powers and duties of directors

Powers and duties of other officers

 
(o) 

Provision for the custody of the mortgage instruments and other securities belonging to the society

 
(p) 

Whether disputes between the society and any of its members, or any person claiming by or through a member, or under the rules, are to be settled by reference to the court or to arbitration

 
(q) 

Fines to be imposed on members

Forfeitures to be imposed on members

Manner of disposal of fines and forfeitures in the accounts

 
(r) 

Provision for the device, custody, and use of the common seal

 
(s) 

Manner in which the society may be terminated or dissolved

 
(t) 

Manner in which bonus ballots are to be conducted

 
17(2) 

Calling and holding of meetings

 
17(2)(a) 

Right of members to requisition meetings

 
(b) 

Manner in which notice of any resolutions to be moved at meetings is to be given to members

 
(c) 

Procedure to be observed at meetings

 
(d) 

Form of notice for the convening of a meeting

Manner of service of notice convening a meeting

 
(e) 

Voting rights of members

Right to demand a poll

Manner in which a poll is to be taken

 
17(3) 

Where the society is incorporated after 1 January 1966, provision authorising the issue of paid up shares to founding members, in accordance with section 29(1)

 
*Terminating society only.
Section of Act B     Other mattersNo of rule
17(4) 

If any, the rules scheduling the forms of mortgage or other instruments

 
Section of Act C     Matters subject to voiding provisions of ActNo of rule
19(7) 

Method of alteration of rules (void if no requirement for a special resolution)

 
77(1) 

Notice of meeting of society (void if provision for shorter notice than 14 clear days, except for an adjourned meeting)

 
79(5) 

Time for receipt of proxy (void if proxy required to be received more than 72 hours before meeting or adjourned meeting)

 
80(1) 

Right to demand a poll (void if right excluded or if demand by not less than 10 members made ineffective)

 
107(2) 

Exemption of officers from liability (void if exemptions other than provided in the Act)

 

Signature:

Designation:

Date:

Schedule 2
Rates of depreciation on improvements

r 14

[Revoked]

  • Schedule 2: revoked, on 20 November 1989, by section 2(2) of the Building Societies Amendment Act 1989 (1989 No 111).

Schedule 3
Fees payable to the Registrar

r 16(1)

[Revoked]

  • Schedule 3: revoked, on 1 April 1996, by regulation 2 of the Building Societies Regulations 1989, Amendment No 1 (SR 1996/39).

Schedule 4
Statement to be attached to each annual terminating group account

r 38(2)

  • 1 In respect of each share in the group—

    • (a) the subscription payments are $[amount] per [period]:

    • (b) the ballot benefit is an interest-free loan of $[amount] for a maximum period of [years]:

    • (c) the current cash payment instead of an interest-free loan is $[amount].

  • 2 At the date of the statement of financial position—

    • (a) the number of shares eligible to win ballots, including those shares which would be eligible if subscriptions were brought up-to-date but excluding non-contributing and lapsed shares, was [number]:

    • (b) the number of clusters remaining in the ballot was [number].

  • 3 In the last financial year—

    • (a) the number of ballots held was [number] and the total amount of interest-free loan money put up for ballot was $[amount]:

    • (b) the average number of shares contained in each balloting cluster was [number]:

    • (c) the amount of interest-free loan money that was won and could be claimed by ballot winners was $[amount], and the total number of successful shares was [number].

  • 4 In respect of groups commenced after 1 January 1961—

    • (a) of the group's nominal shareholding of [number] shares, [number] shares have been issued as ballot participating shares since the group's inception:

    • (b) the number of shares that have won ballots and been entitled to ballot proceeds total [number].

  • Schedule 4 form: amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

Schedule 5
Annual return

r 39(1)

Annual return for year ended: [specify]

Sections 103,104, Building Societies Act 1965

(To be sent to the Registrar in duplicate within 3 months after the end of the financial year)

1  
Names and addresses

  • 1 Name of Society:

  • 2 Registered office:

  • 3 Particulars of directors, secretary, and manager:

Full nameFormer name(s)NationalityUsual residential addressBusiness occupationOther building societies on which board member

Directors:

 

 

     
Secretary:     
Manager:     
2   Summary of fixed capital shares
 Total fixed capital: $[amount]
  
Nominal fixed share capitalFixed share capital issued subject to payment in fullFixed share capital issued subject to payment in part onlyCalls in arrearsPaid up capital
ClassValue (eg, $1)NumberFor cashFor a consideration other than cashFor cashFor a consideration other than cashNumberAmount per shareTotal $
NumberTotal $NumberTotal $NumberAmount per shareTotal $NumberAmount per shareTotal $
Totals                
3   List of present fixed capital shareholders
FolioName and addressNumber of capital shares held at date of list
  Total
4   List of persons ceasing to be fixed capital shareholders since date of last list (or, if this is the first list, since the date of incorporation)
Name and addressNumber of fixed capital shares transferredDate of registration of transfer
   

5
Bonus ballots

   
(1)Dates of ballot held during yearPrize money won
 [specify]$
 [specify]$
 Total$
(2)Interest distributed on bonus balloting shares$
(3)Bonus balloting shares fund as defined in regulation 5$
 (Average of balances at last day of each month) 
(4)Details of any loans taken in lieu of cash prizes: 
Amount of cash prizeAmount of loanTerm of loanInterest rateRemarks

6
Loans made during year concerning officers

  • (1) Loans to any person who was or became a director or manager or secretary of the society:

Type of property (if loan secured)Valuation of property (if loan secured)Amount of loanTotal loans to officer to dateRemarks
     
 Totals   

  • (2) Loans to any body corporate in which a director or manager or secretary of the society controlled then or later more than 2.5% of the nominal paid up share capital of that body corporate, or who was or became a director or general manager or secretary or other similar officer of that body corporate:

Register No of companyType of property (if loan secured)Valuation of property (if loan secured)Amount of loanRemarks
     

Signatures

Date

Director:

 

Director:

 

Secretary:

 

Schedule 6
Regulations revoked

r 41

Building Societies Regulations 1967 (SR 1967/70)
Building Societies Regulations 1967, Amendment No 1 (SR 1976/283)
Building Societies Regulations 1967, Amendment No 2 (SR 1981/153)
Building Societies Regulations 1967, Amendment No 3 (SR 1986/238)

Marie Shroff,
Clerk of the Executive Council.

Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 23 February 1989.

Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)

Notes
1 General

  • This is a reprint of the Building Societies Regulations 1989. The reprint incorporates all the amendments to the regulations as at 1 December 2002, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints

  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared

  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • •omission of unnecessary referential words (such as “of this section” and “of this Act”)

    • •typeface and type size (Times Roman, generally in 11.5 point)

    • •layout of provisions, including:

      • •indentation

      • •position of section headings (eg, the number and heading now appear above the section)

    • •format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • •format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”)

    • •position of the date of assent (it now appears on the front page of each Act)

    • •punctuation (eg, colons are not used after definitions)

    • •Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • •case and appearance of letters and words, including:

      • •format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • •small capital letters in section and subsection references are now capital letters

    • •schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • •running heads (the information that appears at the top of each page)

    • •format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)

  • Securities Markets Amendment Act 2002 (2002 No 44): section 30

    Financial Reporting Amendment Act 1997 (1997 No 17): section 6(1)

    Building Societies Regulations 1989, Amendment No 1 (SR 1996/39)

    Building Societies Amendment Act 1989 (1989 No 111): section 2(2)