Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Bill to give co-ops clarity drawn from ballot

Todd Muller - MP for Bay of Plenty

6 April 2018

Bill to give co-ops clarity drawn from ballot

Bay of Plenty MP Todd Muller’s Members’ Bill which would give clarity around dividend rules has been drawn from the ballot and will be debated in Parliament.

“I am pleased that my Members’ Bill, the Companies (Clarification of Dividend Rules in Companies) Amendment Bill, has been drawn from the ballot. This Bill would amend the Companies Act 1993 to provide legal certainty around dividend rules,” Mr Muller says.

“There is currently doubt about the ability of a company’s constitution to provide for ‘dry shares’. These are shares which do not carry dividend rights in prescribed circumstances and are typically used in cooperatives when the shareholder no longer supplies the cooperative.

“Currently, section 36 of the Act suggests that provision for dry shares can be made in the constitution of a company. However, section 53 can be read in a manner that would seem to negate that right. This amendment seeks to clear up this historic confusion, which will provide much more clarity for cooperatives and shareholders.

“This simple amendment is supported by Cooperative Business New Zealand and makes it categorically clear that the constitution of a company can provide that shares in a class do not confer a right to receive dividends in the circumstances specified in the constitution.

“Zespri has also welcomed the clarity this Member’s Bill would offer on this point which has created challenges for them in the past as a grower-owned organisation. This change would help simplify the shareholding rules for both Zespri and their kiwifruit grower-shareholders.

“Most of my professional career has been in New Zealand’s agricultural sector, where cooperatives flourish, and I know from first-hand experience the challenges that have occurred around the interpretation of the current act.

“The passage of this Bill will build on the work that the previous National Government carried out to make doing business in New Zealand easier. I will be seeking cross-party support for this Bill from first to final reading.”

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

HiveMind: Fair Enough? How Should New Zealanders Be Taxed? - Have Your Say

Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon.

We at Scoop and PEP believe that an issue as important as the fairness of the tax regime should be open for discussion, debate and dialogue. Unfortunately, a written submission process just doesn’t encourage the kind of public exchange we think is necessary in a well-functioning democracy. More>>

 

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in urope for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

Hit And Run: AG Gives Approval For Inquiry

Attorney-General David Parker has today announced a Government Inquiry will be held into Operation Burnham and related events. The operation undertaken in Tirgiran Valley, Afghanistan, ... More>>

ALSO:

Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Early Childhood Sector: Complaints Data Released

A new report released today by the Ministry of Education provides greater transparency and additional information to parents, says Deputy Secretary Sector Enablement and Support Katrina Casey. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages