Essays on Obligations of Issuers Coursework

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The paper "Obligations of Issuers" is a great example of a finance and accounting coursework. Under the Securities Act 1978(the act) the Issuers have the following obligations; firstly under section 51, they ought to keep a register of the securities. These securities are deemed to consist of equity securities, debenture stock, participatory securities, unit trusts, all interests in superannuation schemes and life insurance policies. The register kept should disclose the name and the holder of the security, the date on which the security was transferred or allotted, the holder of the security, its nature, amount and due date of the security.

The issuers are under an obligation to make sure that the register of the securities is audited at least once a year by a very qualified auditor. Moreover, according to the provision of the act, the issuer should give a notice to the Registrar where they keep their register and any change made to its location. Secondly, issuers are under an obligation to allow the inspection of the registers of the securities under section 52 of the act. There is a proviso however that the duration of inspection should not last for more than two hours.

Any holder of the securities should inspect the register without being charged any amount of fee, however, any other person should be charged a prescribed fee. Furthermore, the holders of the securities are allowed to make a copy of the register after payment of a prescribed fee (Chris, 2010). Under section 53 the issuers are under an obligation to keep proper books of accounting. Currently, the books of account should be in line with the financial reporting standards of 1993.

The accounting records kept by the issuers should be properly recorded detailing the analysis of each transaction of the equity securities, unit trust, participatory securities, life insurance policies and superannuation scheme. The records too should be able to accurately present the financial position of the business entity. They should also comply with any other regulation set by the Financial Management Authority (FMA). The financial records kept by the issuers should also be kept in a way that properly and readily allows the auditing of the books of accounts.

Section 53(3) further requires a detailed analysis of these components; the entries of income and expenditures, an inventory of all the assets and liabilities, an analysis of stock if the business deals with stock and when the entity deals with services, a record of all the relevant services accompanied by their invoices. According to the Securities Amendment Act of 1996, the following too should be taken into account by the issuers. That the accounting records be kept in the English language, the accounting record be kept in a registered office of the issuer, the records should also be kept for a period of a minimum of seven years from the date they were completed, they should be available for inspection and they are audited at least once a year by a qualified auditor. The other obligation of the issuers is they should issue certificate evidence the securities.

This is provided under the provision of section 54 of the Act. The certificate should be issued within one month of transfer or allotment of equity debt, debt security, participatory security or a unit.

The certificate issued by the issuers must at all times be executed. However, there are particular classes of securities that the issuers are under no obligation to issue a certificate.


Bennett, Adam, 2006. "One financial regulator to rule them all". NZ Herald.

Hutching, Chris ,2010,. "Some big winners from South Canterbury collapse" UAP.

Securities Regulations 2009

Securities Act 1978.

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