Company Share — Due Diligence Guide for NZ Buyers
Company share (also called company title) is an uncommon form of property ownership where a company owns the building and land, and each apartment or unit owner holds shares in the company rather than a title to their individual unit.
How Company Share Differs
| Attribute | Company Share | Other Types |
|---|---|---|
| What you own | Shares in a company | Unit title: Title to your unit |
| Prevalence | Rare and declining | Unit title: Standard for apartments |
| Bank lending | Very difficult to obtain | Unit title: Standard lending |
| Legal framework | Companies Act 1993 | Unit title: Unit Titles Act 2010 |
Key Risks & Red Flags
Company share is the highest-risk title type:
- Bank lending: Most banks will not lend against company shares, severely limiting your buyer pool.
- No individual title: You don't hold a title to your unit — you hold shares in a company.
- Company governance: The company's constitution and directors control decision-making.
- Resale difficulty: Very limited buyer pool due to bank lending restrictions.
- Conversion: Converting to unit title is possible but expensive and complex.
- Legal complexity: Company law applies rather than property law for many issues.
Due Diligence Checklist
- Review the company constitution and shareholder agreements
- Understand the share allocation and voting rights
- Check the company's financial position (accounts, debts, obligations)
- Verify which shares correspond to which unit
- Assess the feasibility and cost of conversion to unit title
- Confirm bank lending availability (get pre-approval before committing)
- Review the building's physical condition (same as unit title)
- Engage a lawyer experienced with company share properties
Frequently Asked Questions
Why does company share still exist?
Company share was used before the Unit Titles Act provided a legal framework for apartment ownership. Most company share buildings are older properties that haven't yet converted to unit title.
Can company share be converted to unit title?
Yes, but it requires agreement from shareholders, a unit plan survey, and council approval. The process is complex and can cost $20,000-$50,000+ for the building. It usually requires a special resolution of shareholders.
Related Content
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Freehold
Property TypeFreehold (fee simple) is the most complete form of property ownership in New Zealand. The owner has full rights to the land and any buildings on it, with no co-owner dependencies or lease arrangements. Freehold is the most common and most straightforward title type for standalone houses.
Cross-Lease
Property TypeCross-lease is a uniquely New Zealand form of ownership where multiple owners share the freehold of a single parcel of land and lease their individual dwellings from each other. Each owner's dwelling is defined by a flats plan registered with LINZ.
Unit Title
Property TypeUnit title is the standard ownership structure for apartments, townhouses, and multi-unit developments in New Zealand. Each owner holds title to their individual unit and a share of common property, managed by a body corporate.
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