Securities Commission accepts enforceable undertakings from Huka Falls Resort Limited and Kensington Park Properties Limited


	Advanced Search

Print this page.

05 March 2007

News release

Securities Commission accepts enforceable undertakings from Huka Falls Resort Limited and Kensington Park Properties Limited

The Securities Commission has accepted enforceable undertakings from Huka Falls Resort Limited and Kensington Park Properties Limited.

Both companies are developing properties with common facilities for residents.

Each development has an incorporated society set up:

to make and enforce bylaws of the development; and
to own and manage the facilities.

Prospective buyers of properties within the developments were offered membership in the incorporated societies. These memberships are participatory securities under the Securities Act 1978.

The companies offered these securities to the public without an investment statement or registered prospectus. When the offers were made the companies were unaware that the offers breached the law.

The companies and their directors have accepted that the offers were unlawful and have given undertakings which include that:

any future offers of securities to the public will be made in accordance with the provisions of the Securities Act 1978 and Securities Regulations 1983, subject to the terms and conditions of an exemption granted by the Securities Commission;
procedures will be put in place so that advertisements for offers of securities to the public comply with the law;
investors who subscribed for securities will have the opportunity to either:
- cancel their subscription and receive a refund within 15 working days of the closing date of the offer; or
- re-subscribe for their securities under the terms and conditions of an exemption granted by the Securities Commission.

The exemptions are the Securities Act (Kensington Park Properties Limited) Exemption Notice 2007 or the Securities Act (Huka Falls Lodge Limited) Exemption Notice 2007.

"Failure to comply with securities laws carries serious consequences. Issuers and their directors may be required to repay the subscription amounts with interest, and may face civil or criminal penalties," says Commission General Counsel Liam Mason.

"Residential property developers should seek advice from a lawyer who is experienced in securities law. Developers may be able to rely on class exemptions to reduce compliance costs. Alternatively, they may seek an individual exemption from the Commission. These are considered on a case by case basis."

The full texts of the signed undertakings are published on this website.

Ends

Contact: Catherine Chapman phone 027 2969 130

Return to index