Adding, removing and managing shareholders

A company may decide to add or remove a shareholder.  These changes should be reflected in the Companies share register and notified to the Registrar of Companies at the point of filing your annual return.  You can, however, choose to update this information on the Companies Office website at any time.

Learn more about...

• Adding a shareholder
• Removing a shareholder
• Managing the details of existing shareholders

Adding a shareholder

Before you begin

The information required to support the change is dependent on type of shareholder you are adding.

• Person | Ensure you have the full name and residential address of each shareholder to be updated (for resignations this step simply helps you to accurately identify which shareholder to remove).
• Registered New Zealand entity | For shareholders that are a body corporate registered in New Zealand, ensure you have the full entity name and registration/incorporation number.
• Trust | Under the Companies Act 1993 unincorporated trusts such as family trusts cannot hold shares in a company because they are not separate legal entities.  If trusts are entered as shareholders, the application will be rejected.  Instead you should enter the trustees (including full names and residential addresses) as holding the shares jointly.  Trusts registered under certain acts of legislation (for example, the Charitable Trusts Act 1957 and the Maori Land Act 1993) are legal entities that can hold shares.
• Other registered entity | For shareholders classed as Other Entities ensure you have the full name and address (for example, an overseas registered company).

Step 1 | Select 'Add new shareholder'

Select the Add new shareholder button from the Update shareholdings screen.
 

Step 2 | Select the type of shareholder

You can choose from the list of existing directors that haven't already been added as a shareholder, or you can add a new person or entity.

• Now select Continue
   

Step 3 | Amend the share allocations

You now need to amend the share allocations to reflect the changes you have made.  For example, if you have added a shareholder then you will need to allocate shares to the new shareholder.
 

Removing a shareholder

To remove a shareholder, select the Remove button located under the shareholders details in the ‘list of shareholders’ section.

• If you remove a shareholder in error you are able to undo the change.  Although you will need to wait until the changes have been submitted to the register, you then select undo removal button to reinstate the shareholder.

Note | Once the shareholder has been removed, you will need to amend the share allocations to reflect the changes you have made by redistributing the shares and deleting share allocations where appropriate.
 

Manage the details of existing shareholders 

Your ability to amend the details of shareholders is dependent on the type of shareholder:

• Person | Select the Edit button next to the details of the shareholder you want to alter the details of.  Make the required changes and select the Continue button.
• Registered New Zealand entity | For shareholders that are a body corporate registered in New Zealand, you will need to amend the entities details on the register, the changes will then update in the shareholder section of your company once they are registered.
• Other registered entity | Select the Edit button next to the details of the shareholder you want to alter the details of.  Make the required changes and select the Continue button.