New Zealand Legislation: Regulations

12 Conditions of exemption in clause 11 relating to section 37A(1)(a) of Act

• The exemption in clause 11 from section 37A(1)(a) of the Act is subject to the conditions that—

  • (a) the convertible security was issued under an investment statement that relates to both the convertible security and the new security; and

  • (b) if the terms of the convertible security permit the issuer to vary the terms of the convertible security or the new security (including varying the terms of conversion), the investment statement must—

    • (i) state clearly that the issuer may vary the terms of conversion; and

    • (ii) state what steps the issuer will take, before an election to convert is made, to inform holders of convertible securities of the terms of conversion.

  Clause 12 heading: amended, on 21 December 2007, by clause 7(1) of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice (No 2) 2007 (SR 2007/405).

  Clause 12: amended, on 21 December 2007, by clause 7(2) of the Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice (No 2) 2007 (SR 2007/405).