(1) On the establishment of a building society the intended secretary or other officer of the society shall complete and send to the Registrar an application in form 1 of Schedule 1, together with—

• (a) 4 printed and signed copies of the rules; and

• (b) a completed rules check sheet, in form 3 of Schedule 1, in which there shall be specified in the third column, opposite each matter referred to in the second column, the number of the rule providing for the matter.

(2) Every such application shall be accompanied by the fee prescribed for the first registration of the rules of a society.

(1) When a society alters its rules by special resolution it shall send to the Registrar an application for registration in form 2 of Schedule 1, together with—

• (a) 4 printed copies of the alteration; or

• (b) in the case of the rescission of a rule, 4 copies of the special resolution.

(2) The application shall be signed by the secretary or some other officer of the society.

(3) The copies of the alteration or of the resolution, as the case may be, shall be signed by a director and the secretary of the society.

(4) Where the alteration of rules is a substitution of an entire set of rules for the existing set of rules, the society shall also send to the Registrar, with the application, a completed rules check sheet, in form 3 of Schedule 1, in which there shall be specified in the third column, opposite each matter referred to in the second column, the number of the rule providing for that matter.

(5) Every such application shall be accompanied by the appropriate prescribed fee.

For the purposes of these regulations and section 31A of the Act, the bonus balloting shares fund of any society shall be the total paid in respect of any bonus balloting shares together with any vested or unvested earnings of the fund which have not been paid out.

(1) For the purpose of determining the maximum amount that may be distributed by bonus ballot in any financial year, the total fund referred to in section 31A(4)(a) of the Act shall be the figure arrived at by averaging the amounts of the bonus balloting shares fund on the last day of each month of the financial year.

(2) The maximum amount that may be distributed as any one cash prize in a bonus ballot shall not exceed $10,000.

(3) Except with the consent in writing of the Registrar, the amount of any cash prize in an ordinary bonus ballot shall not exceed the amount standing as a credit in the prizewinner's bonus balloting share account, the number of which was a successful participant in the ballot.

(1) All bonus balloting shares held by a member of a society shall be accounted for and identified in a bonus balloting share account.

(2) A member of a society may hold more than 1 bonus balloting share account, each having a unique number.

(3) Individual bonus balloting share account numbers (and not clusters of numbers) shall be drawn to ascertain the prizewinners of any ordinary bonus ballot.

(4) Every bonus balloting share account number shall participate in all ordinary bonus ballots except where a society's rules otherwise provide.

(5) Subject to any provision in a society's rules, a society may for the purposes of an ordinary bonus ballot and upon the request in writing of a member holding 2 or more bonus balloting share accounts, aggregate all or any of those accounts in such a manner as to ensure that the aggregated accounts are represented in the ballot by one unique number.

(6) No bonus balloting share account having a nil balance shall be included in any ordinary bonus ballot.

(7) Not less that 90% of the amount available by way of cash prizes in respect of bonus ballots shall be distributed pursuant to the conduct of ordinary bonus ballots.

(1) The Registrar may authorise in writing, either generally or specifically, any society to conduct a special bonus ballot.

(2) Every such authority from the Registrar shall be subject to such conditions as the Registrar may from time to time impose.

Any provision in a society's rules disqualifying any bonus balloting share account or balloting unit from participating in a bonus ballot because share subscriptions or other payments have not been maintained shall be valid only if—

• (a) the shareholder is advised as soon as the account becomes ineligible for ballot participation; and

• (b) the shareholder is entitled to withdraw the amount in the disqualified account forthwith.

(1) At the time a person becomes a holder of bonus balloting shares, the society shall give to that person a concise written statement of the conditions of that person's investment, including the dividend rate or rates payable, the percentage of the fund to be distributed by ballot, the member's withdrawal rights, and a general description of the way any dividends or interest or prizes should be treated for the purposes of any taxation liability.

(2) All subscriptions in respect of bonus balloting shares that have been credited to any bonus balloting share account shall be withdrawable after a term not exceeding 5 years from the date on which the account was opened.

Subject to these regulations, every society shall conduct its bonus balloting business in each financial year in such a manner as (after bringing all expenditure for the year to account) will provide a surplus sufficient to meet the society's present and potential commitments to its bonus balloting shareholders in respect of that year.

The Registrar may, at any time by notice in writing to a society that issues bonus balloting shares, call upon that society to supply to the Registrar a certificate from an actuary certifying that—

• (a) all eligible bonus balloting share accounts and balloting units have an equal chance of winning a prize; and

• (b) such reasonable procedures are in existence as to ensure that the total amount permitted to be balloted will not be exceeded.

Subject to the provisions of Part 7A of the Act, regulations 5 to 12 shall apply, with such modifications as may be necessary, to any company into which a society becomes converted pursuant to Part 7A of the Act and which is under a liability to any person to hold ballots for the purpose of determining entitlements to receive prizes as if—

• (a) every reference to a society were a reference to a company:

• (b) every reference to a bonus balloting share were a reference to a bonus balloting security:

• (c) every reference to a shareholder or a member were a reference to a holder of a bonus balloting security:

• (d) every reference to the rules of a society were a reference to the terms of issue of any bonus balloting security.

(1) Except as otherwise provided in the Act or (in respect of members of a society) in the society's rules, any notice or other document required by the Act or these regulations to be given to, or served on, any person may be served on that person by delivering it to that person personally, or by sending it by post addressed to that person at that person's last known address within New Zealand.

(2) Any notice or document so sent by post shall be deemed to have been served at the expiry of the fourth working day after the date on which the notice or document was posted.

(1) The fees specified in Schedule 3 are prescribed as the fees to be paid to the Registrar in respect of the matters specified in that schedule.

(2) The fees prescribed by subclause (1) are inclusive of goods and services tax.

(1) The annual return of every society shall be in the form of Schedule 5.

(2) Where appropriate, the word “Nil” shall be inserted against any heading or against the whole of any section of the annual return.

(1) The auditors shall report on the annual return in accordance with section 106 of the Act, but shall not be required to deal with the matters contained in the sections numbered 1 to 4 of the annual return, as set out in Schedule 5.

(2) In respect of section 5 of the annual return, the auditors shall also state whether in their opinion—

• (a) the society's system and procedures for the conduct of bonus ballots are fair and reasonable and are in accordance with the society's rules; and

• (b) the society has promptly distributed the prizes won.

The regulations specified in Schedule 6 are hereby consequentially revoked.