Legislation

Governing the formation and operation of cooperative companies, this Act facilitates the establishment of cooperatives that provide mutual benefits to members through their activities, rather than investment returns. Requires at least 60% of shareholders to be transacting shareholders and allows for unique shareholding structures, such as issuing shares with nominal value and redeeming shares to maintain active membership. All cooperative companies registered under this Act must also be registered under the Companies Act 1993. This dual registration then allows co-ops to use the word ‘cooperative or co-op’ in their name. Examples span many sectors and include MHV Water, Livestock Improvement Corporation (LIC), Foodstuffs South Island, CDC Pharmaceuticals, Paper Plus, and Independent Timber Merchants (ITM).

Regulating the formation and operation of industrial and provident societies, the Act enables the establishment of societies that promote mutual benefit among members, often in a non-profit context. A minimum of 7 members are required to establish a society. Societies are member-owned and focus on mutual benefit. Examples include Farmlands Cooperative Society, Union Medical Benefits Society (Unimed) and RuralCo.

This Act governs the establishment and operation of friendly societies and credit unions and provides a legal framework for organisations that offer mutual aid and financial services to their members. Friendly societies require at least 7 adult members, while credit unions need at least 21 members. Examples include Southern Cross Medical Care Society (Friendly Society) and First Credit Union.

Regulates societies, which provide financial services, traditionally mortgages. The Act facilitates the formation of societies that raise funds through member subscriptions to provide financial services, particularly for housing. Requires at least 20 members to register a building society. Examples include Southland Building Society (SBS Bank) and Nelson Building Society.

Provides certain exemptions for small cooperative companies and industrial and provident societies from specific requirements under the Financial Markets Conduct Act 2013. The exemption reduces compliance costs for small cooperatives while ensuring members receive essential financial information. Exemptions include relief from certain disclosure, register, record-keeping, and financial reporting and auditing requirements, subject to conditions like investment and revenue caps.

Established specifically for the Farmers Mutual Group (FMG), the Act provides a legal structure for mutual insurance organisation

The Kiwifruit Industry Restructuring Act 1999 provided for the conversion of the New Zealand Kiwifruit Marketing Board (NZKMB) into a registered company, Zespri Group Limited. Upon formation, shares were vested in New Zealand kiwifruit producers based on the supply history of their land to ensure the industry remained grower-owned and controlled and Zespri became a corporatised cooperative.

The Dairy Industry Restructuring Act 2001 was passed to enable the formation of Fonterra and to manage risks arising from Fonterra’s dominance in New Zealand dairy markets. This 2022 Amendment Act enables Fonterra to move to its current "Flexible Shareholding" structure as of June 1, 2023.