Share election scheme


  • What are the possible benefits to the company of having a share election scheme?
  • The Solvency Test must be satisfied by the company before the approval of dividend distribution to shareholders. Name and describe the two parts of the Solvency Test. Specify any special conditions that apply to the amounts that must be included when the test calculation are carried out.
  • Visit the website of a company listed on the NZX. Review the company's corporate governance disclosures and determine whether the company complies with the New Zealand Security Commission's listed principles of corporate governance.
  • Explain what you understand by the term GAAP. How is it possible for a NZ company to comply with the requirements of GAAP?
  • What is a constitution and it is a requirement under Companies Act 1993 for companies to have a constitution? Discuss some of the benefits of having a constitution
  • Explain some of the responsibilities and consequences of a breach of duties of a director under the provision of Companies Act 1993.

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Accounting Basics: Share election scheme
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