This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on 26 March 1998, amends the Securities Transfer (Approval of System for Electronic Transfer of Securities on Australian Stock Exchange) Order 1997.
The order amends paragraph (i) of the system description in the schedule of the principal order by adding a reference to issuer sponsored subregisters.
The current paragraph (i) provides that, in the case of New Zealand public issuers whose securities may be transferred under the CHESS securities electronic securities transfer system operated by the Australian Stock Exchange, a public issuer must issue share certificates under New Zealand companies legislation for securities not held on a CHESS subregister but held on the certificated register of the public issuer. Shares held on an issuer sponsored subregister are not, under the governing rules of the system, held on a CHESS subregister. Issuer sponsored subregisters are, however, recognised by the governing rules of the system which provide for securities to be moved electronically from an issuer sponsored subregister to a CHESS subregister.
The effect of the amendment is that securities of public issuers incorporated in New Zealand that are held on an issuer sponsored subregister will be able to be transferred under the CHESS system without the need for the issue of share certificates.