Sale and Purchase of Shares

The transfer of shares in Waimakariri Irrigation Ltd is governed by the Constitution of WIL. The constitution includes important restrictions that apply to the transfer of shares and may result in a transfer being refused.

A purchaser of a property supplied with water from the WIL scheme can not assume that shares in WIL, held by the vendor of the property, will be able to be transferred to the purchaser.

The Board of WIL is required to refuse to register a transfer of shares if the Board is not satisfied as to specific matters set out in the Constitution, including that the supply of water to the proposed transferee:

• is technically possible;
• can be provided with a certainty of supply (whether as to timing or quantity or   flow or otherwise) the Board considers acceptable;
• can be provided with the same efficiency as water was supplied to the transferor;   or
• would not effect detrimentally the supply (whether as to timing or quantity or flow or otherwise) of water to any existing shareholder.

Issues affecting the transfer of shares are particularly likely to arise where a property is being subdivided and the vendor wishes to sell subdivided lots with some of the shares that are held in respect of the whole property.

In addition, the Board may refuse to register a transfer of shares if WIL's standard fee for processing a transfer and preparing an agreement for supply of water to the transferee has not been received by WIL.

There are other important provisions of the Constitution that are also relevant to the transfer of shares in WIL and could result in a transfer being refused. A copy of the Constitution can be viewed at the website of the Register of Companies (www.companies.govt.nz) at the registered office of WIL ( being at the offices of Koller & Hassall Ltd , 267 High Street, Rangiora ).

WIL cannot emphasise enough the care that must be taken in relation to the transfer of shares in WIL and strongly recommends that you make yourself aware of the relevant provisions of the Constitution.

If you would like to discuss the transfer of shares in WIL then please contact WIL.

Leasing Shares

From December 2008 leasing shares from an existing shareholder is now made possible from a month to month agreement between shareholders (as well as longer term). To enable confirmation of the Schemes ability to redirect and deliver water, shareholders wishing to lease are requested to "pre register". Forms available from the Company Secretary.

The Company believes the delivery of water to crops and operations where most demanded (limit being nine shares per hectare), enhances the efficiency and sustainability of available water and thus the benefit to our community. The administration cost is currently covered by the company for month to month lease agreements.