Sharechat Logo

NZ government to overhaul rules for credit unions, mutuals

Friday 12th September 2008

Text too small?
New Zealand's government plans to overhaul rules governing credit unions and mutual institutions, bringing them more in line with the Companies Act, Commerce Minister Lianne Dalziel said today.

"Mutuals will be subject to the same rules of disclosure and transparency and will have to be managed by a board whose directors will be subject to the same duties and qualifications required of company directors," Dalziel said in a statement.

The proposed law change will complete the second stage of the Review of the Friendly Societies and Credit Unions Act 1982, which was put on hold pending broader reforms of the financial sector.

Dalziel said governance rules for credit unions and building societies will "retain flexibility that recognises the special character of mutual financial institutions."

Under legislation passed last week, credit unions and building societies must be licensed as deposit takers by the Reserve Bank. Under the changes proposed, credit unions will have a legal personality which lets them have limited liability, own property, have perpetual succession and sue and be sued, Dalziel said.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer
Tourism Holdings Limited (NZX: THL) Sells Mighway and SHAREaCAMPER to Camplify
26th October 2021 Morning Report
Harmoney Corp Limited (NZX: HMY) Prices $105m Inaugural ABS Transaction
New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report