(1) Without restricting the powers conferred on the Council by the constitution of the Foundation to invest and reinvest in securities authorised by law for the investment of trust funds upon such terms as the Council shall think fit the whole or any part of the moneys of the Foundation not required for the immediate purposes of the Foundation, it is hereby declared that the Council may, subject to the restrictions specified in subsections (2) to (4), invest any such moneys in quoted financial products of any company whether incorporated in New Zealand or elsewhere and that comprise—
(2) The financial products mentioned in subsection (1) do not include:
(a) any shares, stock, debentures, or notes, not fully paid up, except such as are, by the terms of issue, required to be fully paid up within 12 months of the date of issue; or
(3) An investment under subsection (1) shall not be made in the financial products of any company—
(b) if the company has not paid a dividend of at least 5%, in each complete financial year of the company the last day of which occurred within 5 years before the date of the investment, on all ordinary stock and shares issued by the company, excluding (in respect of the financial year of issue) any stock or shares issued in that financial year after the dividend was declared and any stock or shares on which (in terms of their issue) no dividend or dividends of less than 5% are payable in the financial year; and for the purposes of this paragraph a company formed to take over the whole of the business of another company or other companies shall be deemed to have paid the requisite dividend in any financial year, if such a dividend was paid by each such other company in each financial year of that company any part of which fell within the relevant financial year of the company taking over the business.
(4) Before making any investment pursuant to subsection (1) the Council shall first obtain and consider proper advice in writing as to the suitability of the proposed investment from a person—
(5) The Council shall have power to exercise all of the options and other rights to which the Foundation may become entitled as the holder of any ordinary or preference shares, stock, debentures, or notes and to sell, exchange, vary, or transpose any investments from time to time held by the Foundation.
(6) In this section, quoted and financial products have the same meanings as in section 6(1) of the Financial Markets Conduct Act 2013.
Section 3(1): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 3(2): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 3(3): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 3(6): inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).