Since Foodstuffs (Wellington) Co-operative Society had a close relationship with its members, it considered that the offers were exempt from the Securities Act as they did not offer to "the public" but they later formed the view that it is not possible to say with certainty that all members have a close business relationship with the Society and they need the protections of the Act. The Commission was also concerned that some securities may have been allotted in contravention of the Securities Act.
As a result, the Society offered an undertaking to the Commission to resolve the matter.
The Foodstuffs (Wellington) Co-operative Society Limited and its directors undertakes that they will not offer securities to the public for subscription, other than in an investment statement, registered prospectus, or authorised advertisement that complies with the Securities Act and the Regulations, or in accordance with any applicable exemption granted by the Commission.
The Foodstuffs (Wellington) Co-operative Society Limited (Society) is a registered industrial and provident society under the Industrial and Provident Societies Act 1908. It has various classes of shares, rebates and deposits which are only issued to its members so no prospectus has been registered in relation to the issue of these securities.