Shares.

1. No person shall be deemed to have accepted any share in the Company unless he has testified his acceptance thereof by writing under his hand in such form as the Company from time to time directs.

2. Every shareholder of the Company shall, on the second Monday of every month, commencing with the second Monday in the month of January, 1873, and continuing for the period of nineteen calendar months next thereafter, pay to the Company, at its registered place of business in Wellington, during the ordinary office hours of business of the Company, the monthly sum of five shillings per share on every share held by such shareholder. Such payments are herein termed instalments. After the expiration of the period of twenty calendar months, the Directors may from time to time make such calls upon the shareholders, in respect of the moneys unpaid on their shares, as they think fit, provided that thirty days' notice at least is given of each call. No call shall exceed twenty shillings per share, payable by instalments of five shillings per share, at intervals of not less than one calendar mouth. Each shareholder shall be liable to pay the amount of calls so made, at the said registered place of business of the Company at the times appointed by the Directors.

3. A call shall be deemed to have been made at the time when the resolution authorising such call was made, and notice of page 8 such call shall be advertised by authority of the Board of Directors in some newspaper published in the City of Wellington.

4. If any shareholder neglects to pay any instalments, as defined in clause 2, on the second Monday in any month, as by the said clause prescribed, he shall further pay a sum of threepence per month for every instalment on each share held by him in respect of such instalments so in arrear; and in case any instalment shall be in arrear for the space of three calendar months the Directors shall have power absolutely to forfeit, for the benefit of the Company, any such share, the instalments on which shall be so in arrear, and they may direct the sale of such shares in such manner as they shall think fit, and they shall deduct from the proceeds of sale all sums due to the Company, and in addition a sum of £10 per cent, upon the amount realized by the sale, and shall pay the balance, if any, to the original shareholder. The power herein vested in the Directors shall be in addition to all powers vested in them under the 15th and subsequent clauses.

4A. If before or on the day appointed for the payment of any call any shareholder does not pay the amount of any call to which he is then liable such shareholder shall be liable to pay interest for the same at the rate of £10 per centum per annum from the day appointed for payment thereof, reckoned monthly for every month or portion of a month that the same is in arrear, and if any call shall be in arrear for four calendar months the Directors shall have the like power of sale or forfeiture as is mentioned in the last clause.

5. The Directors may, if they think fit, receive from any of the shareholders willing to advance the same, all or any part of the moneys due upon the respective shares beyond the sums actually called for, and upon the moneys so paid in advance, or so much thereof as from time to time exceeds the amount of the calls then made upon the shares in respect of which such advance has been made, the Company may pay interest at such rate as may be agreed on.

5A. The Directors may agree with the shareholders of any Land or Building Society, the business of which shall be transferred to the Company, to allow such shareholders to pay up on their respective shares the full amount of all instalments and possible calls on each share: provided, however, that no such shareholder shall be entitled to pay up in respect page 9 of his shares in the Company a greater sum than the amount of his investment in the shares of the Society whose business shall be so transferred, and such amount as may be necessary to make up an even sum for ordinary shares.

6. If several persons are registered as joint holders of any share, any one of such persons may give effectual receipts for any dividend payable in respect of the share.

7. The Directors may decline to register any transfer of shares made by a shareholder who is a debtor to the Company for arrears of instalments, calls, or otherwise, and in all cases where a shareholder either solely or jointly with any other person or persons is a debtor to the Company, and whether directly or indirectly shall become debtor to the Company or to any person or persons for the use or behoof of the Company, or shall be under engagements to the Company of any kind, such debts and engagements shall be first and paramount charges upon the share or shares of such shareholders, and the dividends or interest accruing thereon, before all other creditors of such shareholder, and before his or her assigns whether voluntary or legal: and it shall be lawful for the Board of Directors, if they shall see fit, to prohibit and restrain the transfer of the share or shares of such shareholder, and the payment of the dividends or interest accruing thereon until all and every such debts and engagements shall have been fully paid and satisfied; and if such shareholder shall fail within a time to be fixed by the Board of Directors to pay and satisfy all such debts and engagements the share or shares of such shareholder shall thereupon become forfeited to the Company, and it shall be lawful for the Board of Directors, without notice to such shareholder, absolutely to sell the said share or shares or so many as shall be necessary and sufficient for the purposes thereof, either by public auction or by private contract, and to apply the proceeds thereof, together with the dividends and interest due thereon, in liquidation of such debts and engagements, and the balance of the net proceeds of any such sale shall be paid over to the late proprietor of such share or shares or to his or her assigns.

8. Every shareholder shall on payment of one shilling be entitled to a certificate under the common seal of the Company, specifying the share or shares held by him and the amount paid up thereon.

8A. There shall be paid in respect of the transfer of every share the sum of one shilling per share.

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8B. If the day appointed for the payment of any instalment or call, or for doing any other act hereby directed, shall fall on a public general holiday such instalment or call shall be paid or such act shall be done on the next succeeding day, not being a Sunday or public general holiday.

9. If such certificate as is mentioned in clause 8 is worn out or lost it may be renewed on payment of the sum of one shilling.

9A. The transfer books shall be closed during the fourteen days immediately preceding the ordinary general meeting in each year.