New Zealand Legislation: Regulations
Regulations are laws made under Acts
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as at 24 September 2010
(SR 1998/293)
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.
This notice is administered by the Securities Commission.
Pursuant to the Securities Act 1978, the Securities Commission gives the following notice.
(1) This notice may be cited as the Securities Act (Dividend Reinvestment) Exemption Notice 1998.
(2) This notice (except clause 6) comes into force on the day after the date of its notification in the Gazette.
(3) Clause 6 comes into force on 1 January 1999.
(4) This notice expires on the close of 30 September 2015.
Clause 1(4): amended, on 24 September 2010, by clause 4 of the Securities Act (Dividend Reinvestment) Exemption Amendment Notice 2010 (SR 2010/323).
(1) In this notice, unless the context otherwise requires,—
Act means the Securities Act 1978
dividend means,—
(a) in relation to equity securities, a dividend within the meaning of the Companies Act 1993; and
(b) in relation to a unit in a unit trust or an interest in a group investment fund, a distribution of the income or gains (whether in the nature of capital or income) of the trust or fund to a holder of a unit in the trust or of an interest in the fund
group investment fund means a group investment fund established under section 29 of the Trustee Companies Act 1967 or section 42A of the Public Trust Office Act 1957
Regulations means the Securities Regulations 2009
scheme—
(a) has the meaning given to it by the Act; and
(b) includes, in relation to an interest in a group investment fund, that group investment fund
specified securities means the following kinds of securities:
(a) equity securities; or
(b) units in a unit trust; or
(c) interests in a group investment fund.
(2) Any term or expression that is not defined in this notice, but that is defined in the Act or the Regulations, has the meaning given to it by the Act or the Regulations.
Clause 2(1) Regulations: amended, on 24 September 2010, by clause 5 of the Securities Act (Dividend Reinvestment) Exemption Amendment Notice 2010 (SR 2010/323).
This notice applies to any specified securities offered by the issuer of those securities only to a person who already holds securities of the issuer that are the same kind as the securities being offered, on terms which—
(a) entitle that person to subscribe for those securities by applying all or any specified part of any dividends declared by the issuer and payable to that person; or
(b) require the issuer to allot those specified securities to that person as fully paid securities in consideration only for that person forgoing the right to receive all or any specified part of any dividends declared by the issuer and otherwise payable to that person.
Every issuer and every person acting on its behalf are exempted from sections 37 and 37A of the Act and the Regulations (except regulation 23) in respect of any specified securities to which this notice applies.
Clause 4: amended, on 24 September 2010, by clause 6 of the Securities Act (Dividend Reinvestment) Exemption Amendment Notice 2010 (SR 2010/323).
(1) The exemption granted by clause 4 is subject to the condition that (before a holder of securities subscribes for, or requires the issuer to allot, specified securities) the holder receives a document that contains—
(a) an offer of specified securities pursuant to a dividend reinvestment plan; and
(b) a description of the dividend reinvestment plan and its terms and conditions; and
(c) a statement that there is available from the issuer, on request and free of charge, a copy of the most recent annual report (if any) and financial statements complying with the Financial Reporting Act 1993 of—
(i) the issuer, if the specified securities are equity securities; or
(ii) the scheme, if the specified securities are units in a unit trust or interests in a group investment fund.
(2) The exemption granted by clause 4 is subject to the further condition that the dividend reinvestment plan contains provisions requiring that,—
(a) at the time the price of the specified securities is set, the issuer has no information that is not publicly available that would, or would be likely to, have a material adverse affect on the realisable price of the security if the information were publicly available; and
(b) the right to subscribe for, or require the issuer to allot, specified securities is offered to all holders of securities of the issuer of the same kind, other than securities holders who are resident outside New Zealand and who are excluded by the issuer to avoid a risk of breaching the laws of the relevant overseas country; and
(c) every securities holder to whom the right is offered is given a reasonable opportunity to accept it; and
(d) the specified securities issued to the securities holder are—
(i) issued on the terms disclosed to the holder; and
(ii) subject to the same rights as the securities issued to all holders of securities of the same kind who agree to receive the securities.
The Securities Act (Dividend Reinvestment) Exemption Notice 1997 (SR 1997/228) is revoked.
Dated at Wellington this 29th day of September 1998.
The Common Seal of the Securities Commission was affixed in the presence of:
[Seal]
M R H Webb,
Member.
Date of notification in Gazette: 1 October 1998.
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)
This is a reprint of the Securities Act (Dividend Reinvestment) Exemption Notice 1998. The reprint incorporates all the amendments to the notice as at 24 September 2010, 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/ 
.
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.
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.
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).
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