New Zealand Legislation: Regulations

7 Further conditions relating to controlling member

• The exemptions in clause 5 are subject to the further conditions that—

  • (a) subscribers for specified securities have, before subscription, received from the developer a statement that—

    • (i) describes the rights, powers, and duties of the developer and the controlling member in relation to the Society and the communal facilities; and

    • (ii) specifies where and how potential investors and members of the Society may obtain further information concerning those rights, powers, and duties; and

    • (iii) states that potential investors should seek professional advice before purchasing a developed property; and

  • (b) it is a term of the offer that the rules provide that an independent mediator must be appointed to act in a dispute between any member of the Society and the developer or controlling member concerning the developer's or controlling member's compliance with the rules when exercising its rights and powers, or performing its duties, as the controlling member or in its capacity as the developer, if at least 25% of all members of the Society (excluding the developer and the controlling member) vote to appoint a mediator; and

  • (c) it is a term of the offer that the rules provide that, until the completion of the development, an updated statement of the matters set out in clause 6(c) and (d) is provided each year to the members of the Society with the financial statements that are distributed under clause 6(q)(vii); and

  • (d) it is a term of the offer that the rules provide that the provisions in the rules conferring rights and powers on the controlling member in its capacity as controlling member will expire or terminate no later than the completion of the development.