New Zealand Legislation: Regulations

11 Exemption from section 37A(1)(a) and (b) of Act for new securities

• (1) If this clause applies, every person is exempted, in respect of the allotment of new securities under the terms of, or on the exercise by any person of a right conferred by, a convertible security, from—

  • (a) section 37A(1)(a) of the Act; and

  • (b) section 37A(1)(b) of the Act (so far as it relates to an investment statement relating to the new security).

  (1A) This clause applies if—

  • (a) securities that are issued by the issuer of the new security, and are of the same class as the new security,—

    • (i) either—

      • (A) were quoted on a specified securities market at the time of the offer and allotment of the convertible security; or

      • (B) were quoted on a specified securities market after allotment of the convertible security, and had been the subject of an application to be quoted on that specified securities market at the time the convertible security was offered; and

    • (ii) are quoted on a specified securities market at the time of the offer and allotment of the new securities; and

  • (b) the convertible security—

    • (i) either—

      • (A) was quoted on a specified securities market at the time it was allotted; or

      • (B) was quoted on a specified securities market after it was allotted, and had been the subject of an application to be quoted on that specified securities market at the time it was offered; and

    • (ii) remains quoted on a specified securities market for the period that it is current; and

  • (c) the new securities are to be quoted on a specified securities market on allotment.

  (2) In this clause, new security means an equity security or unit that is allotted under the terms of, or on the exercise by any person of a right conferred by, any convertible security.

  Clause 11 heading: amended, on 21 December 2007, by clause 6(1) of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice (No 2) 2007 (SR 2007/405).

  Clause 11(1): substituted, on 21 December 2007, by clause 6(2) of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice (No 2) 2007 (SR 2007/405).

  Clause 11(1A): inserted, on 21 December 2007, by clause 6(2) of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice (No 2) 2007 (SR 2007/405).

  Clause 11(2): substituted, on 29 May 2009, by clause 8 of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice 2009 (SR 2009/149).