Dated at Wellington this 19th day of September 2000.
The Common Seal of the Securities Commission was affixed in the presence of:
This note is not part of the notice, but is intended to indicate its general effect.
This notice comes into force on the day after the date of its notification in the Gazette and expires on 30 June 2004.
The notice replaces the Securities Act (Minimum Subscription) Exemption Notice (No 2) 1999.
The notice applies to participatory securities and units in unit trusts the terms of which require the price to be paid by instalments over a period specified in the registered prospectus with the first instalment payable on subscription.
Clause 5 of the notice continues the exemption in the Securities Act (Minimum Subscription) Exemption Notice (No 2) 1999. The clause exempts issuers of participatory securities and units from the prohibition against allotment in section 37(2) of the Securities Act 1978 if the minimum amount referred to in that subsection is not paid to the issuer within 4 months after the date of the registered prospectus.
The exemption is subject to the condition that subscribers have, within 4 months after the date of the registered prospectus, become legally bound to pay that amount to the issuer under the participation deed or the trust deed relating to the securities.
Clause 6 is new. The clause exempts issuers of participatory securities from section 37A(2) of the Act. Section 37A(2) prohibits allotments of participatory securities unless the amount payable on application for the security is at least 10% of the nominal amount of the security.
The exemption is subject to the conditions that—
(a) subscribers for the participatory securities become legally bound, at the time of subscription, to meet the full subscription price of the participatory securities in the manner and at the time specified in the investment statement relating to the participatory securities; and