Opinion Number. 626

Subject

COMMONWEALTH BANK
WHETHER COMMONWEALTH BANK MAY OPEN BRANCH IN NEW ZEALAND: COMPLIANCE WITH NEW ZEALAND STATUTORY REQUIREMENTS

Key Legislation

COMMONWEALTH BANK ACT 1911, s.23: BANKING ACT 1908 (N.Z.): COMPANIES ACT 1908 (N.Z.), ss.298, 300, 301, 302, 307

Date
Client
The Treasurer

So far as the Commonwealth Bank Act is concerned it appears that by section 23 the Governor of the Bank may open a branch in New Zealand with the consent of the Treasurer.

As regards New Zealand law, provisions relating to banking are contained in two Acts-the Banking Act 1908 and the Companies Act 1908, Part IX. 92

As regards the Banking Act 1908-Certain provisions of that Act relating particularly to the making of returns and the keeping of accounts would apply to the Commonwealth Bank as to other banks. There appears, however, to be nothing in the Act which would preclude the establishment of a branch of the Bank in New Zealand.

As regards the Companies Act 1908-Part IX of that Act relates to companies incorporated outside New Zealand and carrying on business in New Zealand. Section 298 of the Act provides for the appointment by a foreign company desiring to transact business in New Zealand of an attorney within New Zealand. By section 300 it is provided that, before a foreign company commences business in New Zealand, the attorney so appointed shall deposit in the office of the Court nearest to the place where the company proposes to carry on business a certified copy of the original power of attorney under which he claims to represent the company, together with a certified copy of the certificate or other evidence of the incorporation of the company. By section 301, if the company proposes to carry on business in different places or extend its operation to different places, like copies of the power of attorney or certificate must be filed in the different districts. By section 302 the foreign company is required to have an office in New Zealand where legal process may be served upon it and notices delivered. By the remaining paragraphs of that section provision is made for notification in the Gazette of intention to commence business and of notice of any change in the situation or locality of an office or place of business. By section 307 before a foreign company voluntarily ceases to carry on business in New Zealand three months' notice must be given of its intention so to do.

[Vol. 13, p. 415]

  1. This opinion is unsigned in the Opinion Book, but it is attributed to Mr Hughes.