	Title
1	Short Title.
2	Interpretation.
3	Certain provisions of other Acts not affected.
	Part I Dairy-produce and Dairies
	Officers
4	Appointment of Inspectors, Analysts, &c.
	Inspection and Sanitation
5	Special powers of Inspectors.
6	Inspector may order defects to be remedied.
7	What matters may be included in such order.
8	Unfit dairy-produce may be condemned.
9	Duties of owner where stock diseased, or person affected with disease.
10	Inspector may require certain information.
11	Statistics.
12	Certain nuisances not allowed near dairy.
	Sale or Exportation of Dairy-produce
13	Certain dairy-produce not to be sold or exported.
14	Dairy-produce not to be adulterated.
15	Milt not to be sold if tainted or impure.
16	Milk to be cooled or aerated before sale.
17	Dairy-produce not to be stored in room used for domestic purposes, &c.
18	Purchaser may take sample of milk for analysis.
19	Procedure when sample taken.
	Export of Dairy-produce
20	Appointment of ports and stores for export of dairy-produce
21	Conditions under which dairy-produce may be exported.
	Miscellaneous
22	General penalty for breaches of Act.
23	Regulations.
24	Application of fees and fines.
	Part II Government Advances to Dairy Companies
	Advances
25	Applications for loans.
26	Total amount that may be advanced.
27	Purposes for which loan may be granted.
28	Particulars to be specified in application.
29	Documents to be forwarded with application.
30	Minister to be satisfied as to capacity of dairy, &c.
31	Documents, &c., to be verified.
32	Security to be valued.
33	Governor in Council may sanction loan.
34	Amount of loan limited.
35	Conditions as to loans for constructing factories.
	Repayment of Advances with Interest, and the Security therefor.
36	Mode of repayment of loan and interest.
37	First mortgage of factory and property.
38	Form and conditions of mortgage.
39	Special provisions as to company to which loan granted.
	Enforcement of Security
40	Charge to become fixed when company in default.
41	Powers of Minister on default being made.
42	Directors’ powers suspended.
43	Company may deal with assets when not in default.
	Raising of Moneys
44	Minister of Finance may raise money.
45	Debentures may be issued.
	General
46	Statements to be laid before Parliament.
47	Regulations under this Part.
	Part III Co-operative Dairy Companies
48	Interpretation.
49	Registration of co-operative dairy company.
50	Surrender of shares.
51	Reissue of surrendered shares.
52	Surrendered shares not to exceed one-fifth of total number.
53	Consideration for surrender of shares.
54	Compulsory surrender of shares.
55	Certain sections of Companies Act not to apply to co-operative dairy companies.
	Schedule Enactments consolidated

An Act to consolidate certain Enactments of the General Assembly relating to the Inspection of Dairies, the Manufacture, Sale, and Export of Dairy-produce, and the making of Government Advances to Dairy Companies.

BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows:—

1 Short Title.

(1.)

The Short Title of this Act is “The Dairy Industry Act, 1908.”

Enactments consolidated.

(2.)

This. Act is a consolidation of the enactments mentioned in the Schedule hereto, and with respect to those enactments the following provisions shall apply:—

Savings.

(a.)

All offices, appointments, Orders in Council, orders, warrants, regulations, registers, registrations, records, advances, securities, notices, instruments, and generally all acts of authority which originated under any of the said enactments or any enactment thereby repealed, and are subsisting or in force on the coming into operation of this Act, shall enure for the purposes of this Act as fully and effectually as if they had originated under the corresponding provisions of this Act, and accordingly shall, where necessary, be deemed to have so originated

(b.)

All matters and proceedings commenced under any such enactment, and pending or in progress on the coming into operation of this Act, may be continued, completed, and enforced under this Act.

1898, No. 22, sec. 2

(3.)

This Act is divided into Parts, as follows:—

Part I.—Dairy-produce and Dairies. (Sections 4 to 24.)

Part II.—Government Advances to Dairy Companies. (Sections 25 to 47.)

Part III.—Co-operative Dairy Companies. (Sections 48 to 55.)

2 Interpretation.

1898, No. 22, sec. 2

In this Act, if not inconsistent with the context,—

“Butter-fat” means the pure fat of milk:

“Conveyance” includes every description of cart, wagon, truck, or other vehicle:

“Dairy” means—

(a.)

A milk-house, milk-shop, dairy factory, and any other place where dairy-produce is collected, deposited, treated, separated, prepared, or manufactured, or is sold or offered or exposed for sale; and includes

(b.)

A farm, stockyard, milking-yard, paddock, shed, stable, stall, and any other place where cows from which the milk-supply of a dairy is obtained are depastured or kept:

“Dairy company” means a company limited by shares, registered under “The Companies Act, 1908,” and formed for the purpose of establishing and carrying on a dairy factory and disposing of dairy-produce:

“Dairy factory” means a butter-factory or cheese-factory, and includes creameries and skimming-stations:

“Dairy-produce” means milk, cream, butter, or cheese, and includes any other product of milk or cream:

“Disease,” in the case of other than human beings, means any disease within the meaning of “The Stock Act, 1908”:

“Infected” means infected with disease:

“Margarine” includes all substances, whether compound or not, prepared or manufactured from any form of animal fats (other than butter-fat or milk) or of animal, mineral, or vegetable oils, and capable of being used as a substitute for butter:

“Milk” means the milk of cows, goats, and sheep:

“Minister” means the Minister of Agriculture:

“Owner” means the owner, whether jointly or severally, and includes the owner’s agent or manager; it includes also, in the case of a company, the manager, secretary, or other principal officer thereof:

“Package” includes cask, keg, crate, can, box, case, wrapper, tin, and every other receptacle or covering used for the packing of dairy-produce:

“Prescribed” means prescribed by this Act or by regulations under this Act:

“Pure milk” means the whole of the milk (including what is commonly known as the “strippings”) drawn at the time of milking; but does not include milk containing less than three per centum of butter-fat, or mixed with any preservative or chemical or colouring matter of any kind:

“Ship” includes a vessel of any description propelled by any means whatever:

“Stock” means stock as defined by “The Stock Act, 1908.”

3 Certain provisions of other Acts not affected.

Ibid, sec. 5

Except in so far as the Governor by Order in Council otherwise directs, nothing in this Act shall affect the operation of any of the following enactments in so far as they relate to dairy-produce or dairies, that is to say:—

(a.)

“The Public Health Act, 1908”;

(b.)

“The Sale of Food and Drugs Act, 1908”; or

(c.)

So much of “The Municipal Corporations Act, 1908,” as empowers a Council to make by-laws in respect of the public health and convenience:

Provided that no person shall be punished twice in respect of the same offence:

Provided also that compliance with any specified provision of this Act shall be deemed to be a sufficient compliance with the corresponding provision of any such enactment or of any by-law thereunder.

Part I Dairy-produce and Dairies

Officers

4 Appointment of Inspectors, Analysts, &c.

1898, No. 22, sec. 6

(1.)

The Governor may from time to time appoint such Inspectors, Analysts, experts, and other officers as he deems necessary for the purposes of this Act, and may also prescribe their powers and functions.

(2.)

All Inspectors under “The Stock Act, 1908,” shall be deemed to be Inspectors under this Act.

General powers of Inspectors.

(3.)

Every Inspector under this Act shall, for the purposes of this Act, have all the powers and functions of an Inspector under “The Sale of Food and Drugs Act, 1908,” and “The Stock Act, 1908.”

Powers of Analysts. Ibid, sec. 7

(4.)

Every Analyst under this Act shall, for the purposes of this Act, have all the powers and functions of an Analyst under “The Sale of Food and Drugs Act, 1908.”

Inspection and Sanitation

5 Special powers of Inspectors.

Ibid, sec. 8

In the exercise of his functions under this Act an Inspector may do the following things, that is to say:—

(a.)

He may at all reasonable times enter, inspect, and examine any dairy, and may also inspect and examine any stock, utensil, machinery, apparatus, or works in a dairy, or used in connection with a dairy or with dairy-produce, and also any building, conveyance, or ship used for the storage or carriage of dairy-produce:

(b.)

He may at any dairy or elsewhere inspect and examine any dairy-produce, or the food or water supplied to any dairy or to the stock in or about any dairy, and also demand and without payment take samples thereof for inspection or analysis:

(c.)

He may at any time and in any place detain and open any package containing or supposed to contain dairy-produce, for the purpose of inspecting or taking samples of the contents thereof, or of ascertaining whether such package bears or contains any false description or brand.

6 Inspector may order defects to be remedied.

1898, No. 22, sec. 9

In any case where, as the result of his inspection and examination, the Inspector is satisfied of the existence of any of the following defects, that is to say:—

(a.)

That any dairy is in an unclean or unwholesome condition; or

(b.)

That any utensil, machinery, or apparatus in or about the dairy or used in connection with dairy-produce is in an unclean or unwholesome condition, or is otherwise unfit for the purpose; or

(c.)

That any building, conveyance, or ship used for the storage or carriage of dairy-produce is in an unclean or unwholesome condition, or is otherwise unfit for the purpose; or

(d.)

That any stock in or about a dairy, or used in connection therewith or with dairy-produce, are diseased; or

(e.)

That any person employed in or about a dairy is affected with any contagious or infectious disease within the meaning of “The Public Health Act, 1908,” or is a member of a household wherein any person is affected with any such disease; or

(f.)

That any food or water supplied to stock, or any water used in connection with a dairy, is impure or unwholesome,—

he may, by order in writing under his hand delivered to the owner, consignee, or person in charge, without further name or description, require such defects to be remedied to his satisfaction; and every such order shall be duly obeyed.

7 What matters may be included in such order.

Ibid, sec. 10

For the purposes of the last preceding section the Inspector may by any such order—

(a.)

Order any dairy, utensil, machinery, apparatus, or work, building, conveyance, or ship, as the case may be, to be forthwith cleansed, disinfected, and rendered wholesome to his satisfaction; or

(b.)

Forbid the same to be used in any way for the purposes of dairy-produce, either absolutely or until all defects have been remedied to his satisfaction, or for such time as he thinks necessary; or

(c.)

Order any stock condemned by an Inspector to be forthwith removed and dealt with as diseased stock; or

(d.)

Forbid the removal from a dairy of any dairy-produce for such time as he thinks necessary.

8 Unfit dairy-produce may be condemned.

Ibid, sec. 11

The Inspector shall, by order under his hand delivered to the owner, consignee, or person in charge, condemn any dairy-produce whenever he is satisfied that such produce is unfit for human consumption; and all dairy-produce so condemned shall be disposed of in such manner as is prescribed.

9 Duties of owner where stock diseased, or person affected with disease.

Ibid, sec. 12

In every case where disease appears in any stock in or about a dairy, or where any person living or working in or about a dairy is found to be affected with any such contagious or infectious disease as aforesaid, the following provisions shall apply:—

(a.)

The owner or occupier of the dairy shall forthwith draft out and at all times keep separate all such diseased stock from the stock not suffering from disease;

(b.)

He shall also at all times prevent the milk or cream obtained from such diseased stock being mixed with other dairy-produce, or being in any way sold or used for food:

(c.)

He shall also, as far as practicable, isolate and keep isolated every person so affected with any such contagious or infectious disease.

10 Inspector may require certain information.

1898, No. 22, sec. 13

Whenever requested by an Inspector so to do, the owner or person in charge of a dairy shall—

(a.)

Furnish to the Inspector a list of the customers or other persons supplying milk or cream to such dairy, or supplied with dairy-produce from such dairy; and also

(b.)

Furnish to the Inspector any personal assistance and information in his power to enable the Inspector to search for and discover any source of contamination, infection, or disease to which any stock or dairy-produce may be exposed.

11 Statistics.

Ibid, sec. 14

The owner or person in charge of a dairy shall from time to time supply to the Minister such statistics and information relating to such dairy as are prescribed or as the Minister requests.

12 Certain nuisances not allowed near dairy.

Ibid, sec. 15

(1.)

A person shall not keep pigs or permit them to be kept within fifty yards of any dairy within the meaning of paragraph (a) of the definition of “dairy” in section two hereof, or within that distance of the open water-supply of such dairy.

Ibid, sec. 16

(2.)

A person shall not permit any fowl-house, manure-heap, cesspool, or closet to be within thirty feet of any dairy as last aforesaid or of any enclosed yard or building where cows are kept.

Ibid, sec. 17

(3.)

A person owning or having charge of stock or pigs shall not permit drainage therefrom to flow into or (unless in a properly enclosed drain) within fifty yards of any such dairy as last aforesaid, or the open water-supply thereof, or any enclosed yard or building where cows are kept.

Sale or Exportation of Dairy-produce

13 Certain dairy-produce not to be sold or exported.

Ibid, sec. 18

A person shall not sell, or offer or expose for sale, or export or attempt to export, any dairy-produce which—

(a.)

Is affected or infected with disease; or

(b.)

Has been near to or in contact with any person, stock, or thing affected or infected with disease; or

(c.)

For any other reason is likely to endanger the public health; or

(d.)

Is marked with any other weight than the true net weight thereof; or

(e.)

Is contained in any package marked with any weight other than the true net weight of the dairy-produce contained therein; or

(f.)

Is contained in any package marked with any grade-mark or brand not properly pertaining to the contents; or

(g.)

Has been condemned by an Inspector.

14 Dairy-produce not to be adulterated.

Ibid, sec. 19

(1.)

A person shall not—

(a.)

Mix with or add to dairy-produce, or use in the manufacture thereof, any extraneous ingredient of any description; or

(b.)

Manufacture any dairy-produce from other than milk or cream; or

(c.)

Knowingly sell any such produce.

(2.)

Except in so far as is otherwise provided by regulations under this Act, nothing in this section shall be construed to prevent pure sugar, common salt, or any harmless coagulative, preservative, or colouring ingredient or constituent being used in the manufacture of dairy-produce.

15 Milt not to be sold if tainted or impure.

1898, No. 22, sec. 20

A person shall not sell or supply to a dairy for any purpose, or to any person for human consumption,—

(a.)

Any milk or cream which is tainted; or

(b.)

Any milk or the cream from any milk which has been drawn from a cow that is suspected or known to be diseased, or that has calved within four clear days before the day on which the milk was so drawn; or

(c.)

Any milk which is not pure milk, except in cases where such person gives to the person to whom the milk is sold or supplied a statement in writing that it is not pure milk.

16 Milk to be cooled or aerated before sale.

Ibid, sec. 21

A person shall not supply or sell to any dairy any milk unless such milk has been properly cooled by being passed over a cooler or aerator immediately after being drawn from the cow.

17 Dairy-produce not to be stored in room used for domestic purposes, &c.

Ibid, sec. 22

Dairy-produce intended for sale or supply for profit shall not be deposited or stored by any person in any room used for domestic purposes, or in any place calculated to render such produce unwholesome or injurious to health.

18 Purchaser may take sample of milk for analysis.

Ibid, sec. 23

At the request of any person to whom any milk or cream is offered or supplied by way of sale (hereinafter called “the purchaser”) the person offering or supplying the same (hereinafter called “the seller”) shall allow the purchaser to take a sample thereof for analysis by an Analyst under this Act:

Provided that the purchaser when taking the sample states that it is taken for analysis.

19 Procedure when sample taken.

Ibid, sec. 24

Forthwith upon taking such sample, the purchaser, in the presence of the seller, shall, if the seller so requires,—

(a.)

Divide the sample into two equal or nearly equal portions, and enclose each portion in a clean bottle:

(b.)

Seal one bottle with his own seal, and permit the seller to seal the other with his own seal:

(c.)

Retain for analysis the bottle sealed by the seller, and permit the seller to retain the other sealed bottle.

Export of Dairy-produce

20 Appointment of ports and stores for export of dairy-produce

Ibid, sec. 25

The Governor may from time to time, by Order in Council gazetted,—

(a.)

Appoint any specified ports to be the only ports at which dairy-produce, or any specified class or description thereof, may lawfully be exported, either generally or to any specified country or colony:

(b.)

Appoint fit buildings to be stores for the storage, cooling, or freezing of dairy-produce prior to export:

(c.)

Prescribe the mode in which and the conditions subject to which such stores shall be used.

21 Conditions under which dairy-produce may be exported.

Ibid, sec. 26

(1.)

Dairy-produce shall not be shipped or placed on board any ship for export from New Zealand unless—

(a.)

It is in all respects sound, in good condition, and free from disease; nor unless

(b.)

The requirements of this Act relating to such produce, and to the inspection, grading, and marking thereof, have been duly complied with; nor unless

(c.)

The ship is in all respects in a fit and proper condition to receive the dairy-produce, and also is properly equipped with all appliances and requisites necessary for the safe carriage thereof in good order and condition through the whole of the intended voyage.

(2.)

Nothing in this section shall apply to dairy-produce shipped for the sole use of the passengers and crew of the ship on the intended voyage.

Miscellaneous

22 General penalty for breaches of Act.

1898, No. 22, sec. 27 1907, No. 37, sec. 3

(1.)

Every person is liable to a fine not exceeding fifty pounds who directly or indirectly, by himself, his agent or servant,—

(a.)

Resists or wilfully obstructs any officer under this Act in the performance of his duty; or

(b.)

Refuses to give information, or gives false information, in answer to any inquiry made by any such officer in the performance of his duty; or

(c.)

Exports or attempts to export, or is concerned in exporting, any dairy-produce in breach of any of the provisions of this Act; or

(d.)

Exports or attempts to export any butter which contains more than sixteen per centum of water; or

(e.)

Knowingly makes any statement required by this Act which is false in any material particular; or

(f.)

Commits any breach of any of the provisions of this Act for which no penalty is provided by this Act elsewhere than in this section.

(2.)

Where any duty or obligation imposed on any person by this Act is also imposed on him by any other Act, compliance with either Act shall be deemed to be compliance with both.

(3.)

In any case where any offence under this Act is also an offence under any other Act, proceedings may be taken under either Act, but no person shall be punished twice for the same offence.

23 Regulations.

1898, No. 22, sec. 28 1903, No. 13, sec. 3

The Governor may from time to time, by Order in Council gazetted, make regulations—

(a.)

For the registration of dairies, or for any specified class or description of dairy:

(b.)

For the licensing or registration of persons carrying on the manufacture or sale of dairy-produce, or of any specified class or description of dairy-produce:

(c.)

For the registration of marks, stamps, brands, and labels used for dairy-produce, or for any specified class or description of dairy-produce:

(d.)

For the inspection of cows kept for the purpose of supplying milk to dairies, and of other stock kept upon or about a dairy:

(e.)

For the inspection and sanitation of dairies, and of the machinery, utensils, appliances, packages, and conveyances used in or about dairies, or in connection with the manufacture, deposit, or carriage of dairy-produce:

(f.)

For the inspection, grading, packing, marking, stamping, branding, and labelling of dairy-produce:

(g.)

For the export of dairy-produce, and the inspection and sanitation of ships used for the export of dairy-produce:

(h.)

Preventing the infection or contamination of dairy-produce:

(i.)

Providing for the pasteurisation or sterilisation of dairy-produce at dairy factories, or at any specified class of dairy:

(j.)

Preventing the pollution of the water-supply of dairies:

(k.)

Preventing the pollution of streams or rivers by any dairy or dairy factory:

(l.)

Preventing the manufacture, sale, consumption, or export of infected dairy-produce, or the manufacture of dairy-produce from infected milk or cream:

(m.)

Preventing or limiting the use of preservatives or other ingredients in the manufacture of dairy-produce:

(n.)

Prescribing the matters in respect whereof fees are payable under this Act, and fixing the amounts of such fees:

(o.)

Prescribing the form of licenses, certificates, notices, and other documents under this Act:

(p.)

Any other matters for which regulations are contemplated or required by this Act, or which he deems necessary for the efficient administration thereof:

(q.)

Imposing fines not exceeding fifty pounds for the breach of any such regulation.

24 Application of fees and fines.

1898, No. 22, sec. 29

All fees and fines received or recovered under this Act shall be paid into the Consolidated Fund, and all expenses incurred in the administration of this Act shall be paid out of moneys to be appropriated by Parliament.

Part II Government Advances to Dairy Companies

Advances

25 Applications for loans.

Ibid, sec. 30

Subject to the provisions of this Act, any dairy company duly authorised by its articles or rules to borrow money on the security of its assets (including its uncalled capital) may make application to the Minister for a loan under this Act.

26 Total amount that may be advanced.

Ibid, sec. 31 1903, No. 13, sec. 2

The total amount that may be advanced or agreed to be advanced in respect of loans under this Act in any one year shall not exceed thirty thousand pounds; and no loan shall be granted or agreed to be granted after the thirty-first day of March, one thousand nine hundred and eight:

Provided that all loans then granted or agreed to be granted may be completed thereafter.

27 Purposes for which loan may be granted.

1898, No. 22, sec. 32

No loan shall be granted under this Act to any company except for one or more of the following purposes:—

(a.)

The acquisition of land as a site for the company’s dairy factory:

(b.)

The erection, acquisition, or extension of suitable buildings for such factory:

(c.)

The supply and erection of suitable plant and machinery for such factory.

28 Particulars to be specified in application.

1898, No, 22, sec. 33

The application shall be made in writing, under the seal of the company and the hands of at least two of the company’s directors, and shall specify—

(a.)

The style of the company and the date of its incorporation:

(b.)

The names of its directors, and also of its manager, secretary, or other principal officer, and the situation of its registered office:

(c.)

The nominal capital of the company: the number of shares into which the capital is divided; the amount respectively paid up and unpaid per share at the date of the application (distinguishing capital paid up in actual cash from capital paid up otherwise than in actual cash); the total amount of calls then in arrear; and the total amount of the uncalled capital:

(d.)

The amount of the loan applied for:

(e.)

The purpose for which the loan is required.

29 Documents to be forwarded with application.

Ibid, sec. 34

The application shall be accompanied or supplemented by the following documents:—

(a.)

A certified copy of the company’s certificate of incorporation:

(b.)

A copy of the company’s memorandum of association, and of its articles or rules:

(c.)

A list of the names, addresses, and occupations of its shareholders, showing the number of shares held by each, and the amount paid up and unpaid in respect thereof at the date of the application:

(d.)

A copy of a resolution duly passed by the company in special meeting, authorising the directors to borrow under this Act the sum applied for, or such less sum as the Governor in Council may consent to lend:

(e.)

A statement of the total amount of the assets of the company other than uncalled capital:

(f.)

A statement of the total liabilities of the company other than in respect of capital:

(g.)

A description of the land, buildings, and works (if any) owned by the company at the date of the application, together with a statement of the total actual cost, and the then actual value thereof:

(h.)

A detailed description of the site of the dairy factory, with special reference to the facilities for working and drainage, and the estimated milk-supply:

(i.)

A detailed statement of the particular land to be acquired or works to be constructed by means of the proposed loan, together with plans and specifications thereof, and detailed estimates of the cost.

30 Minister to be satisfied as to capacity of dairy, &c.

Ibid, sec. 35

The loan shall not be granted unless and until the company supplies evidence in writing to the satisfaction of the Minister—

(a.)

That the dairy factory will be of sufficient capacity to efficiently manufacture not less than such quantity of dairy-produce per working-day as is agreed on between the company and the Minister prior to the grant of the loan:

(b.)

That within a reasonable and practicable radius of the company’s factory there is an available supply of milk in quantities sufficient for the purposes of the factory:

(c.)

That satisfactory contracts have been entered into or arrangements made for the regular supply of milk or cream to the company in quantities sufficient to keep the dairy factory regularly and constantly employed during the ordinary working-season to the full extent of its average capacity for a period of not less than three years from the date on which, after the grant of the loan, the company commences the manufacture of dairy-produce:

(d.)

That at least one-fourth of the capital has been called up and utilised for the purposes mentioned in section twenty-seven hereof.

31 Documents, &c., to be verified.

1898, No. 22, sec. 36

The foregoing documents and evidence shall be verified by the statutory declarations of persons competent to speak to the facts.

32 Security to be valued.

Ibid, sec. 37

(1.)

The Minister shall cause the proposed security for the loan to be examined, valued, and reported on by a competent valuer at the cost of the company.

(2.)

The valuer’s report shall be so framed as to specify separately the respective values of land, buildings, machinery, and uncalled capital constituting such security, and also the total value of all the security, exclusive of the uncalled capital.

33 Governor in Council may sanction loan.

Ibid, sec. 38

After considering the valuer’s report, together with the company’s application and the documents and evidence furnished by the company as aforesaid, the Minister, if satisfied therewith and with the prospects of the company, shall refer the matter to the Governor in Council, who may decline to grant any loan, or may agree to grant the amount applied for, or such less amount as the Governor in Council thinks fit.

34 Amount of loan limited.

Ibid, sec. 39

(1.)

The amount of the loan shall in no case exceed two thousand pounds, and not more than that sum shall be lent to any one company.

(2.)

The amount of the loan shall in no case exceed three-fourths of the uncalled capital of the company at the date of the application for the loan.

35 Conditions as to loans for constructing factories.

Ibid, sec. 40

Where the loan is required in aid of a dairy factory to be constructed by the company the following provisions shall apply:—

(a.)

The factory shall be constructed under the supervision of an Inspector appointed by the Minister at the cost of the company.

(b.)

Progress-payments in respect of the loan shall be made from time to time by the Minister as the work advances, and the final payment shall be made when the work is completed.

(c.)

No progress-payment shall exceed one-half of the actual cost of the work actually done in respect of which that payment is made.

(d.)

No progress or final payment shall be made except upon the written certificate of the Inspector.

(e.)

Such certificate shall set forth the nature and value of the work actually done, the fact that it has been done to the Inspector’s satisfaction, and the amount of the payment to which the company is entitled in respect thereof.

Repayment of Advances with Interest, and the Security therefor.

36 Mode of repayment of loan and interest.

1898, No. 22, sec. 41

With respect to the repayment of the loan, with interest thereon, the following provisions shall apply:—

(a.)

The amount of the loan, together with interest thereon at the rate of five per centum per annum, shall be repayable by the company by equal half-yearly instalments, extending over such term of years, not exceeding fifteen, as is agreed on, and the first instalment shall be payable six months after the commencement of such term.

(b.)

Such term shall commence on such date as is agreed on, being in no case later than two years after the first progress or other payment made by the Minister in respect of the loan:

Provided that for the period elapsing between the date of the first progress or other payment and the commencement of the term the company shall, at such intervals as the Minister directs (in no case exceeding half-yearly intervals), pay interest at the rate aforesaid on the amount of each progress or other payment, computed from the date on which the same was made.

(c.)

Every such instalment shall consist partly of principal and partly of interest, and shall be calculated and paid according to a table to be prescribed by regulation under this Act.

(d.)

Such prescribed table shall be computed and framed in the same mode and on the same principle as the table set out in the Second Schedule to “The Government Advances to Settlers Act, 1908.”

(e.)

When paying any instalment on the due date thereof, the company (not being in arrear with any instalment) may also pay in advance any one or more of the next succeeding and consecutive instalments of principal, as shown in the prescribed table; and in the case of every instalment of principal so paid in advance the corresponding instalment of interest as shown in that table shall not be payable, but the subsequent instalments of principal and interest as shown in the said table shall be deemed to be due and payable at half-yearly intervals thereafter.

(f.)

When paying at its due date any prescribed instalment of principal and interest after the sixth, the company (not being in arrear with any instalment) may, with the consent of the Minister, readjust the loan by treating the balance of the principal then unpaid as a fresh loan duly granted on that date.

(g.)

Such readjustment shall be effected by memorandum of readjustment signed by the Minister, and duly executed under the seal of the company.

(h.)

The memorandum of adjustment shall be in the prescribed form, and shall specify the amount of the fresh loan, the term thereof, the number of equal half-yearly instalments by which the principal and interest are repayable, the amount of each instalment, and the due date of the first such instalment, being in every case six months after the date on which the fresh loan is deemed to be duly granted as aforesaid.

(i.)

The memorandum of adjustment may be by indorsement on the mortgage executed by the company in respect of the original loan, as hereinafter provided, or by separate instrument, and may be registered in like manner as the mortgage.

(j.)

From and after the due execution of the memorandum of adjustment such mortgage shall operate and be construed in all respects as applying to the fresh loan and the prescribed instalments as specified in the memorandum, in lieu of the original loan and instalments as specified in the mortgage.

(k.)

The amount of such fresh loan shall not be deemed to be an advance within the meaning and for the purposes of section twenty-six hereof.

(l.)

All instalments and interest moneys paid by or received from the company shall, as and when received on behalf of His Majesty, be paid over by the Minister of Finance to the Public Trustee, to an account called “The Dairy Industry Advances Account.”

(m.)

All moneys in that account shall be invested by the Public Trustee in such authorised investments as will yield the highest rate of interest, and, with all accumulations of interest, shall be held at the disposal of the Minister of Finance as and when required by him for the purpose of providing the principal and interest moneys payable in respect of the debentures issued under the provisions in that behalf hereinafter contained, and the costs and expenses connected with the issue or conversion of such debentures.

37 First mortgage of factory and property.

1898, No. 22, sec. 42

Before receiving any progress or other payment in respect of a loan under this Act, the company shall execute, at its own cost and expense in all things, and to the satisfaction of the Minister, a first mortgage in favour of His Majesty over the dairy factory and all other property and assets (present or future) of the company, including its uncalled capital, to secure the repayment of the loan, together with interest thereon as aforesaid, and all other moneys payable by the company under this Act or such mortgage.

38 Form and conditions of mortgage.

Ibid, sec. 43

(1.)

The mortgage shall be in such form, and shall contain such covenants, stipulations, and conditions not inconsistent with this Act, as the Minister thinks fit.

(2.)

The provisions of “The Chattels Transfer Act, 1908,” shall not apply to the instrument of mortgage, nor shall it be necessary for any list or description of the mortgaged chattels to be contained therein or in any schedule thereto.

(3.)

On full payment and satisfaction being made by the company of all moneys payable under its mortgage, the company shall, at its own cost in all things, he entitled to a release and discharge thereof by instrument executed by the Governor in the name of His Majesty.

39 Special provisions as to company to which loan granted.

1898, No. 22, sec. 44

With respect to any company to which a loan is granted under this Act the following provisions shall apply so long as any liability under this Act or any such mortgage continues, anything in the articles of association or rules of such company, or in any Act, to the contrary notwithstanding:—

(a.)

The half-yearly and other payments to be made under this Act or such mortgage shall, by force of this Act, be a first and floating charge in favour of His Majesty on the factory and all other present or future property and assets of the company (including its uncalled capital).

(b.)

Until all half-yearly and other payments previously due and payable by the company are fully paid, no profits, dividends, bonuses, or other returns shall be paid to its shareholders.

(c.)

The company shall annually set aside, and pay into a special reserve fund, not less than five pounds per centum of its profits for the year.

(d.)

Such reserve fund shall be invested in such securities as the Minister prescribes, and shall not be available for the purposes of the company except in so far as he approves in writing.

(e.)

The profits which, after providing for such reserve fund, may be divided amongst the shareholders in any year shall not exceed six pounds per centum on the paid-up capital, and all surplus profits then remaining shall be paid into such reserve fund.

(f.)

All insurable property of the company shall at all times be kept insured by and at the cost of the company and to the satisfaction Of the Minister, in the name of His Majesty, in a sum equal to the full insurable value thereof.

(g.)

All buildings, erections, plant, and machinery of the company shall at all times be kept in good and substantial repair and condition, by and at the cost of the company, to the satisfaction of the Minister.

(h.)

The payment of the company’s liability and the performance of its obligations under this Act or any such mortgage, and all remedies in respect thereof (including all remedies against any shareholder or other debtor of the company), whether conferred by this Act or the aforesaid mortgage, may be enforced in the name of His Majesty by the Minister, or any person authorised by him in that behalf, against the company, its assets, property, and uncalled capital (and also against its shareholders and other debtors in so far as their liability extends) in priority to all other claims.

(i.)

The powers and remedies of His Majesty under this Act and under any such mortgage may be exercised and enforced either concurrently with or independently of one another, as the Minister thinks fit.

(j.)

A certificate in writing, purporting to be under the hand of the Minister, shall, until the contrary is proved, be sufficient evidence for all purposes of the amount due and owing to His Majesty by the company, or by any shareholder or other debtor of the company.

(k.)

Any person authorised by the Minister in that behalf may at all times enter on and inspect the company’s lands, buildings, and works, and also inspect and take copies of or extracts from any books, documents, or records of the company.

(l.)

Whenever requested in writing by the Minister so to do, the company, its directors and officers, shall furnish him with any information required by him relating to the company’s transactions or business.

(m.)

No capital shall be called up, nor shall any share be transferred, without the previous consent in writing of the Minister or of such person as he authorises in that behalf.

(n.)

The Minister may from time to time, by notice in writing addressed to the company at its registered office,—

(i.)

Prohibit the company doing anything which in his opinion may prejudicially affect the security for the said loan; and also

(ii.)

Direct the company to renew or repair its buildings, plant, or machinery, or to call up capital, or to take any other action which he deems necessary.

Enforcement of Security

40 Charge to become fixed when company in default.

1898, No. 22, sec. 45

(1.)

The aforesaid floating charge shall, by force of this Act, become a fixed charge forthwith upon the company being in default; and the company shall be deemed to be in default in any of the following cases, that is to say:—

(a.)

If it fails duly and punctually to pay any prescribed instalment in respect of principal or interest, or any other money payable by it under this Act or its mortgage; or

(b.)

If it fails faithfully to observe and perform any other of the provisions or stipulations of this Act or its mortgage; or

(c.)

If the company or any of its directors or officers fail faithfully to comply with any direction, prohibition, or order of the Minister, or of any person authorised by him to give the same.

Ibid, sec. 46

(2.)

A notice by the Minister in the Gazette, declaring that the company is in default, and that the aforesaid floating charge has become a fixed charge, shall be sufficient evidence of the fact.

41 Powers of Minister on default being made.

Ibid, sec. 47

(1.)

At any time after the company is in default, the Minister, for the purpose of giving effect to the charge created by this Act, and irrespective of his powers under the mortgage, may appoint some person on behalf of His Majesty to enter into full and absolute possession of the dairy factory, and generally of the mortgaged property, or into any part thereof in the name of the whole, and carry on the works at the company’s risk and expense, or sell and dispose of the same, and generally of the mortgaged property, in such manner, at such prices, and on such terms in all respects as he thinks fit, with power to call up capital and otherwise exercise all the powers of the directors as he thinks fit.

(2.)

All instruments of assurance, and other instruments of any description necessary for effecting any of the purposes of this section, may be executed by the Minister on behalf of His Majesty, and every instrument so executed by him shall be deemed to be executed by His Majesty.

42 Directors’ powers suspended.

1898, No. 22, sec. 48

While such possession continues the powers of the directors shall be suspended, and shall be exercisable only by the Minister or the person authorised in that behalf by the Minister.

43 Company may deal with assets when not in default.

Ibid, sec. 49

Until the Minister by notice in the Gazette declares that the company is in default, it may dispose of and deal with its assets in the ordinary course of its business, but in no case, so long as any liability continues under this Act or the aforesaid mortgage, shall it mortgage or encumber its assets or any part thereof without the previous consent in writing of the Minister.

Raising of Moneys

44 Minister of Finance may raise money.

Ibid, sec. 50

For the purpose of providing funds out of which all advances under this Act may be made, the Minister of Finance, as often as occasion requires, may raise money (not exceeding thirty thousand pounds in any one financial year) under the provisions of “The New Zealand Loans Act, 1908,” and for that purpose this Act shall be deemed to be an authorising Act within the meaning of that Act.

45 Debentures may be issued.

Ibid, sec. 51 1903, No. 43, sec. 2

(1.)

As security for any money so raised, or in satisfaction of any progress or other payment in respect of any advances under this Act, in case the company concerned is willing to accept the same in lieu of cash, debentures, scrip, or inscribed stock may be created and issued under “The New Zealand Loans Act, 1908,” for such amount as is required, bearing interest at a rate not exceeding four pounds ten shillings per centum per annum.

(2.)

For the purpose of providing money to meet the aforesaid debentures and scrip as they become due the Minister of Finance shall apply the moneys in the Dairy Industry Advances Account; and the Public Trustee shall, without further appropriation than this Act, from time to time pay to him out of the moneys in that account whatever sum he requests for such purpose, or for the purpose of defraying the costs and charges connected with the issue, conversion, or payment of the debentures, scrip, or inscribed stock created and issued as aforesaid.

(3.)

The moneys raised as aforesaid shall be paid into the Consolidated Fund, and, to the extent to which such moneys are paid into that fund, but not further or otherwise, all moneys advanced to any company by way of loan under this Act shall, without further appropriation than this Act, be payable out of that fund.

General

46 Statements to be laid before Parliament.

1898, No. 22, sec. 52

Within thirty days after the close of each financial year ending the thirty-first day of March there shall be prepared and laid before Parliament if in session, or if not in session, then within thirty days after the commencement of the nest ensuing session thereof, the statements following, that is to say: —

(a.)

By the Minister of Finance, a statement showing for such year—

(i.)

All debentures issued as aforesaid;

(ii.)

All advances by way of loan under this Act, showing separately the amount advanced in money and the amount advanced in debentures;

(iii.)

All repayments made in respect of such advances;

(iv.)

A report on each company to which any advances have been made, with special reference to its compliance with its obligations under this Act: and

(b.)

By the Public Trustee, a statement showing for such year—

(v.)

All moneys paid into the Dairy Industry Advances Account;

(vi.)

All interest received from the investment of those moneys;

(vii.)

All moneys paid out of that account to the Minister of Finance;

(viii.)

The balance in that account at the beginning and at the end of the year.

47 Regulations under this Part.

1898, No. 22, sec. 53

The Governor in Council may from time to time make such regulations as he deems necessary to give full effect to the provisions of this Act relating to Government advances to dairy companies.

Part III Co-operative Dairy Companies

48 Interpretation.

1907, No. 56, sec. 2

(1.)

In this Part of this Act the term “co-operative dairy company” means a company which is incorporated under “The Companies Act, 1908” (whether before or after the coming into operation of this Act), and the principal object of which is the manufacture of butter or cheese from milk supplied to the company by its shareholders.

(2.)

For the purposes of this Part of this Act the principal object of a company means the principal business which the company for the time being carries on, notwithstanding the fact that by its memorandum of association the company may be authorised to carry on any other business.

49 Registration of co-operative dairy company.

Ibid, sec. 3

(1.)

A co-operative dairy company may at any time, on application to the Registrar of Companies under “The Companies Act, 1908,” become registered as such under this Part of this Act, and when so registered shall become subject to the provisions of this Part of this Act accordingly.

(2.)

For every such registration there shall be paid a fee of one pound.

(3.)

The said Registrar shall issue to the company when so registered a certificate of registration under this Part of this Act, and such certificate shall be conclusive evidence of the validity of such registration.

(4.)

In the case of companies incorporated after the coming into operation of this Act, no application for registration under this Part of this Act shall be made unless such registration is provided for by the articles of association of the company or by a special resolution of the company.

(5.)

Every application for the registration of a company under this Part of this Act shall be accompanied by a statutory declaration, made by one or more directors or officers of the company, that the company is a co-operative dairy company within the meaning of this Act.

(6.)

Any registration of a company under this Part of this Act may at any time be cancelled by the Registrar if he is of opinion that the company is not or has ceased to be a co-operative dairy company within the meaning of this Act, and upon such cancellation being notified to the company the company shall cease to be subject to the provisions of this Part of this Act.

50 Surrender of shares.

1907, No. 56, sec. 4

Notwithstanding anything in “The Companies Act, 1908,” or any rule of law to the contrary, it shall be lawful for any company registered under this Part of this Act as a co-operative dairy company to require or accept from any of its shareholders, in accordance with the provisions hereinafter contained, a surrender of any shares held by them in the company, and to pay for the shares so surrendered out of the assets of the company in manner hereinafter provided.

51 Reissue of surrendered shares.

Ibid, sec. 5

Any shares so surrendered may be reissued by the company to any person in the same manner as if they had not been previously issued.

52 Surrendered shares not to exceed one-fifth of total number.

Ibid, sec. 6

(1.)

The number of shares so surrendered to the company and not reissued shall not at any time exceed one-fifth of the total number of shares issued by the company, exclusive of the said shares so surrendered and not reissued.

(2.)

Any director of the company who accepts, authorises, or consents to the surrender of any share in breach of the provisions of this section commits an offence, and is liable to a fine not exceeding fifty pounds in respect of each share so unlawfully surrendered.

53 Consideration for surrender of shares.

Ibid, sec. 7

The surrender of any share may be accepted by the company, in pursuance of the foregoing provisions, from any shareholder who agrees to surrender the same, and in such case there shall be payable to such shareholder out of the assets of the company such amount as is agreed upon between the company and such shareholder by way of consideration for such surrender.

54 Compulsory surrender of shares.

Ibid, sec. 8

(1.)

Any company registered under this Part of this Act may at any time (subject to any restrictions or conditions imposed by its articles of association) require any shareholder to surrender to the company the shares held by him, or so many of them as the company thinks fit, in consideration of the payment by the company out of its assets of the amount paid up or deemed to be paid up on the shares so surrendered, together with interest on such amount at the rate of five per centum per annum, calculated from the end of the previous financial year of the company to the date of the surrender.

(2.)

No demand for the surrender of any share shall be made under the authority of this section except in pursuance of a resolution of the shareholders of the company.

(3.)

On the expiration of one month after a written notice of any such resolution has been received by the said shareholder, the shares so to be surrendered by him shall be deemed to have been duly surrendered, and may thereafter be reissued by the company to any other person.

55 Certain sections of Companies Act not to apply to co-operative dairy companies.

1907, No. 56, sec. 9

Sections thirty-five, seventy, seventy-one, seventy-two, and seventy-three of “The Companies Act, 1908,” shall not apply to a co-operative dairy company which is registered under this Part of this Act, or whose articles of association provide for its registration under this Part of this Act,

Schedule Enactments consolidated

1898, No. 22.—“The Dairy Industry Act, 1898.”

1903, No. 13.—“The Dairy Industry Act Extension Act, 1903.”

1907, No. 37.—“The Butter Export Act, 1907.”

1907, No, 56.—“The Co-operative Dairy Companies Act, 1907.”