New Zealand Legislation: Regulations
Regulations are laws made under Acts
Add to web feed 2009/149
Pursuant to the Securities Act 1978, the Securities Commission gives the following notice (to which is appended a statement of reasons of the Securities Commission).
This notice is the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice 2009.
This notice comes into force on the day after the date of its notification in the Gazette.
This notice amends the Securities Act (Rights, Options, and Convertible Securities) Exemption Notice 2002.
Clause 4(1) is amended by inserting the following definition in its appropriate alphabetical order:
“convertible security means any option, share warrant, convertible note, preference share, or preference unit”.
Clause 5(2) is revoked.
Clause 6(2) is revoked.
(1) Clause 7(1)(b) is amended by adding “that was allotted before 1 October 1997”
.
(2) Clause 7(2) is revoked.
Clause 11 is amended by revoking subclause (2) and substituting the following subclause:
“(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.”
Dated at Wellington this 25th day of May 2009.
The Common Seal of the Securities Commission was affixed in the presence of:
[Seal]
J Diplock,
Chairperson.
This notice, which comes into force on the day after the date of its notification in the Gazette, amends the Securities Act (Rights, Options, and Convertible Securities) Exemption Notice 2002.
The principal notice provides certain exemptions in relation to new equity securities or units in a unit trust (new securities) that are allotted under the terms of, or on the exercise by any person of a right conferred by, a convertible security. The principal notice currently specifies that different sorts of convertible securities are involved depending on whether the new securities are equity securities or units. This notice inserts a new definition of convertible security that will apply regardless of whether the new securities are equity securities or units.
The Securities Commission considers that it is appropriate to amend the principal notice because the policy of the notice is that it benefits investors if the prospectus for the convertible securities contains all relevant information about both the convertible securities and the new securities. This policy applies to new securities that are either equity securities or units. The amendment ensures that the policy applies equally whatever the precise nature of the convertible securities.
Date of notification in Gazette: 28 May 2009.
This notice is administered by the Securities Commission.
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