Now is a great time to consider whether the legal vehicle of your society is best serving your needs. We’ve outlined the pros and cons of Incorporated Societies and Charitable Trusts as entities here.

If you believe a Charitable Trust is right for you, we can help you transition from an incorporated society. The process if relatively straightforward but can take some time. A few key points to consider are:

  1. Bequests – have you received many bequests in the past?  Once your current incorporated society is wound up, there is a chance that a bequest meant for you may not find its way to the new entity.  There are ways to help prevent this (e.g. notifying key stakeholders that they should update their will, keeping the same charities services number or even keeping the society as a shell for a period of time), but it is still a risk.
  2. Employees – if you have any employees, you need to make sure you engage with them throughout the process and give them time to consider the change.  We have a specialist employment team who can help you throughout this process.
  3. Contracts – you will need to move any contracts across to the new entity and inform key stakeholders of the change – this can take time.  If you own any property, this would need to be transferred too. We and our specialist property team could assist throughout this process.
  4. IRD and Charities Services numbers – you will need to apply for a new IRD number. If you have tax donee status, this will need to transition from the society to the charitable trust. The good news is you can keep your number with Charities Services despite moving to a different type of entity.
  5. Taking people on the journey with you – it’s so important to take members and stakeholders on the journey with you.  This means it can take some time to transition, but is well worth it when it comes time to vote.

Here’s what the transitioning process would look like:

Parry Field Lawyers could help with each step of the process. If you would like to find out more, get in touch to arrange a call or meeting.

This article is not a substitute for legal advice and you should consult your lawyer about your specific situation. Please feel free to contact us at Parry Field Lawyers:

We have a lot of exceptional people across Parry Field Lawyers and are delighted to officially welcome the newest member of our West Coast team.

Maria Smith has joined our Hokitika office providing support to clients on a range of matters including rural, residential and commercial property.

She’s spent the past eight years working in a mid-sized Dunedin law firm and grew up, and studied, in Otago.

“I am really enjoying Hokitika, and the wildness of the West Coast,” Maria says. “I particularly notice the warmth of people here and the relaxed pace. It’s great.”

Maria is also enjoying the diversity of work and meeting new clients.

“I think that’s why Parry Field is such a good fit for me – to be able to take the time to really get to know clients. There are clients from Otago that I will miss a lot but I’m looking forward to making new connections here.”

Background in planning

Admitted to the Bar in early 2021, Maria began her career in architectural draughting.

She then decided to do her law degree when she developed an interest in planning and the Resource Management Act.

Initially Maria studied law part-time and says once she’d completed her degree it was clear it wasn’t planning but the law itself that became her main interest.

“Basically, I’m keen on supporting people with property transactions or leases, Powers of Attorney, wills, estates and trusts, ” she says.

“I like being able to help and this work allows me to do that and be in the background getting things done.”

Maria takes over from the good work in Hokitika by solicitor Zahra Rafyee who has now moved to Christchurch based in our Riccarton office.

 

Trends on Coast

Our West Coast-based Partner Joseph Morris says there has been a steady increase in residential property sales over winter and it’s been a busy first half the year for the team there.

“We are seeing an increase in rural work, and we also have a number of new clients that have family trusts, in light of the new Trusts Act 2019,” he says.

“We have had very good feedback regarding the Trust Management Service that we have introduced at Parry Field.”  Joseph says it’s an opportunity to make sure that clients’ family trusts are up to date and fit for purpose.

The Act came into force in January 2021 and is the first major trust law reform in New Zealand for decades. There’s further information on our website with a Practical Guide to Family Trusts or guidance on the Impact of the Trusts Act 2019.

Get in touch with Maria or any of our Coast team: Maria Smith – Parry Field Lawyers. 

In September 2023, the regulations for the Incorporated Societies Act 2022 (the “new Act”) were released.  So what do you need to know?

Alternative method of filing documents may be allowed by the registrar where it is not practicable for the society to use the Incorporated Societies website (although this is preferred).

Infringement fees listed in the draft regulations have been kept the same (table below). There is no cap for the amount of fees a society can receive if multiple offences occur at the same time. The infringement process has also been released.

Nature of Infringement Offence Fee
Failure to notify the Registrar of amendments to the constitution $100
Failure to notify the Registrar of elections or appointments and other changes relating to officers $100
Failure to maintain a register of members $100
Failure to call annual general meeting $500
Failure to properly hold, and keep minutes of, annual general meetings $500
Failure to send copy of passed resolution in lieu of meeting to certain members $200
Failure to register financial statements $500
Failure to register an annual return $100
Failure to have a registered office $100
Failure to give the Registrar notice of change of contact person $200

Transitional period until 5 October 2028 allows for a) societies to continue to restrict AGM attendance, if their constitution allowed it prior to 5 October 2023; and b) have more than 50% independent officers on their committee, if their constitution allows.

Members’ register must include past members, but only those who ceased to be a member within the last seven years.

Application for re-registration will include the prescribed information set out in the Regulations, which we have explained in our article here.

With the new Act comes a lot of changes to the requirements for an incorporated society’s constitution. We have helped many incorporated societies over the years and would be happy to discuss your situation with you, especially when it comes to amending your society’s constitution so it meets the requirements set out in the new Act. You can contact us any time by email or phone.

We have a lot more resources at this page dedicated to the Incorporated Societies Act 2022.

This article is not a substitute for legal advice and you should consult your lawyer about your specific situation. Please feel free to contact us at Parry Field Lawyers.

From 5 October 2023 until 5 April 2026, all 24,000 incorporated societies in New Zealand must re-register under the Incorporated Societies Act 2022 (the “new Act”).

So what does this mean for you and your society?  In this article we’ll set out what you need to know ahead of the re-registration period.

 

What will re-registration involve?

Companies Office wants to make the re-registration process as simple as possible with no fees.  There will be an online form to complete with a few key pieces of information for your society:

  • New Zealand Business Number and registration number;
  • the physical address of your proposed registered office;
  • your balance date;
  • who your contact person is;
  • the names of the proposed officers and for each officer:
    • their physical address (note this won’t be publicly available);
    • their written consent to being an officer; and
    • a certificate confirming they are not disqualified from holding office as an officer – Companies Office have made a template for this available here;
  • confirmation your society has 10 members; and
  • confirmation that an officer considers the proposed constitution complies with the Act.

Your society will also need to upload a constitution that complies with the new Act.  We have done a series of six articles on this topic which you can find on our Information Hub.  We are helping many incorporated societies review and update their constitutions in preparation for the new Act – if this is something you would like assistance with, please feel free to get in touch.

 

What can you do to prepare?

Now is a great time to take a look at your constitution and practices to make sure they are fit for purpose under the new Act.  Do you have a disputes resolution procedure?  How do you deal with conflicts of interest?  We have lots of information on how the new Act will affect your society available on our Information Hub and are happy to help your society to prepare.  You can contact us anytime by email or phone.

This article is not a substitute for legal advice and you should consult your lawyer about your specific situation. Please feel free to contact us at Parry Field Lawyers.

Kia ora!  Hope you are all enjoying Te Wiki o Te Reo Māori (Māori Language Week 2023) and even trying out some new kupu!

The feedback on the Charities Healthchecks has been amazing – I pasted an example below, thanks again to the 100 or so of you who inputted on them!

This update email is about “Seed Habits”, a very short little book reflecting on the 9 key principles I’ve learned from the 364 conversations on seeds podcast.

Would you like a copy?  I am giving it away to anyone who signs up for the Seeds Impact Conference which currently has 268 people signed up – it is all online on 5th October, with 27 sessions and about 80 panellists and the cost is just $20 or apply for a scholarship (means you get in free) – join us?

Feedback on healthchecks:

“The board sends their gratitude to you for the incredible mahi you have put into the Guide.  At last night’s board meeting they remarked on the braided river metaphor, investment behind it and outcome when we discussed it in last night’s Board Meeting and asked me to pass on their thanks.  Thank you.”

I’ve enjoyed being at the Philanthropy NZ conference in Wellington the last few days – recording sessions for seeds to share later, thanks for the opportunity to do that Sue, Lynne, Gin and the team there.

Incorporated Societies note…

Our team is working every day with many many small, medium and very large #Incorporated #Societies to update their rules before the reregistration starts on 5th October.

🌿That period will run for 2.5 years until April 2026.  If you don’t reregister you’ll be removed…all 24,000 incorporated societies need to take action.  Currently 6,660 are also registered charities.

🌳We have free monthly webinars that have reached about 800 so far attending – info and sign ups is at our information hub which has more than a dozen articles, videos, and how to get our free guide with the 10 things to know.  All that is here: https://www.parryfield.com/home/blogs/resources-for-the-incorporated-societies-act-2022/

🌊 We are helping in two main ways:

  1. Helping #rewrite #rules (we have developed a set of rules which will meet all new requirements) and helping reregister;
  2. Considering if the entities #should reregister or if instead its best to consider #transitioning to another entity type – such as a charitable trust.

Let me know if you’d like to talk!  Or forward on to others.

Ngā mihi
Steven

On 21 June 2023, the Government announced a simplified points system for the Skilled Migrant Category (“SMC”) as part of the immigration rebalance.

In summary, what is changing?

1) The points system is changing. You will need 6 points to apply.

2) To apply, you must have skilled job or job offer with an accredited employer in New Zealand to apply. There was no such requirement under the old system.

3) There will be no cap under the new SMC system – see below.

4) A Skilled Migrant Category Interim Visa will be introduced – see below.

What is a “skilled” job or job offer?

 For your job or job offer to be considered skilled, you must be suitably qualified and your job or job offer must:

  • Be with an accredited employer in New Zealand;
  • Guarantee at least 30 hours per week;
  • Pay:
    • At or above the median wage (currently $29.66 an hour) where it is an ANZSCO Level 1 to 3 occupation; or
    • 1.5 times the median wage (currently $44.49 an hour) where it is an ANZSCO Level 4 to 5 occupation;
  • Be a permanent contract or fixed-term for at least 12 months.

How does the new point system work?

 You will need 6 points to apply. You can claim 6 points from:

  • One of the following skill categories:
    • Your New Zealand occupational registration;
    • Your qualification;
    • Your income from your job or job offer (earning at least 1.5 times the median wage in New Zealand);

(“skill points”)

  • And your skilled work experience in New Zealand.

(“skilled work in New Zealand points”)

See Immigration New Zealand’s summary below.

How many New Zealand occupational registration points can I claim?

 You can claim between three to six New Zealand occupational registration points.

For occupational registrations which require more training, you can claim more points. For example:

  • A Registered Nurse can claim 3 points;
  • A Midwife can claim 4 points;
  • A Dentist can claim 5 points; and
  • A Medical Practitioner can claim 6 points.

How many qualification points can I claim?

 You can claim between three to six qualification points as per the following:

Points Qualification
6 Level 10 Doctoral Degree
5 Level 9 Master’s Degree
4 Level 8 Bachelor Honours Degree

Level 8 Postgraduate Diploma
3 Level 8 Postgraduate Certificate

Level 7 Bachelor’s Degree

 Your qualification must be:

  • A New Zealand qualification; or
  • An overseas qualification on the List of Qualifications Exempt from Assessment; or
  • An overseas qualification which has been evaluated by the New Zealand Qualifications Authority.

How many income points can I claim?

 You can claim three, four or six income points as per the following:

Points Income
6 3 x the median wage (currently $88.98 an hour) or more
4 2 x the median wage (currently $59.32 an hour) or more
3 1.5 x the median wage (currently $44.49 an hour) or more

To claim income points your job or job offer must:

How many skilled work in New Zealand points can I claim?

To claim skilled work in New Zealand points, the skilled work experience must:

  • Have been in New Zealand;
  • Have been at least 30 guaranteed hours per week;
  • Have paid:
    • At or above the median wage where it is an ANZSCO Level 1 to 3 occupation; or
    • 1.5 times the median wage where it is an ANZSCO Level 4 to 5 occupation.

You can claim 1 point per year, up to a maximum of 3 points.

Has there been any change to English language requirements?

 No. These requirements have not changed. See https://www.immigration.govt.nz/new-zealand-visas/preparing-a-visa-application/english-language/acceptable-english-language-test-results/english-language-test-results-for-residence-visas.

Has there been any change to age requirements?

No. As with the old system, you must be 55 years and under to apply.

What about health and character requirements? Will they be changing?

No. They will stay the same.

How many visas are there under the new SMC system?

There is no cap under the new SMC system. As long as you meet the criteria, your visa application will be approved.

What long will it take Immigration New Zealand to process visa applications under the new SMC system?

Immigration will New Zealand aim to process straightforward and complete applications within 6 to 8 weeks. However, where Immigration New Zealand ask other organisations for information (third party checks), it will take more time. Immigration New Zealand cannot control how long third party checks take.

What if my temporary visa expires while my SMC application is in progress?

An interim visa (the Migrant Category Interim Visa) will be introduced for people applying under the new SMC system.

Your Skilled Migrant Category Interim Visa will be granted automatically and will come into effect the day after your current visa expires.

Your Skilled Migrant Category Interim Visa conditions will be the same as conditions as you currently hold.

Your Skilled Migrant Category Interim Visa will expire the soonest of:

  • 24 months after it comes into effect;
  • The date your Skilled Migrant Category Resident Visa application is approved; or
  • Where the visa application is declined or withdrawn, 2 months after the decision is made.

When are these changes effective from?

The changes will be effective from 9 October 2023.

However, you may still apply under the old SMC system where:

  • You submitted an Expression of Interest before 11:59pm on 15 August 2023; and
  • You have been invited to apply.

Why the changes?

The Government is introducing these changes to:

  • Not give skilled migrants false hope about gaining residence in New Zealand by providing clarity;
  • Process applications faster;
  • Reduce New Zealand’s reliance on lower-skilled migrant workers and encourage employers to offer competitive wages; and
  • Retain skilled migrants to fill medium-to-long-term skills needs that would take time to fill by workers already in New Zealand.

Please note that this article not a substitute for legal advice and you should contact your lawyer about your specific situation. Please contact us by email immigration@parryfield.com or by phone 03 348 8480, if you have any questions.

Kia ora All,

I am pleased to release the Charities Healthcheck guides.  Huge thanks to the 100 people who helped make this possible by reviewing, commenting or encouraging (each of you are listed at the start of these ‘collaborative’ guides).

This integrates in the final feedback received including now having an “Overview” document containing the top 3 points from each part, so it can be used on its own for the really ‘essential’ health check and not overwhelm.  We will aim to update this in a year and continue to provide lots of other resources, guides, articles etc at this Charities Information Hub where anyone can request these.  Feel free to post or share that link so others know about this and if you tag me will add a comment too.

Honestly, this turned into a bigger project then first anticipated – but most important, it should help many!  What else could we all collaborate on?

Also don’t forget that 170 people have signed up for the Seeds Impact Conference already – join them on 5th October?  Just $20 and 27 sessions with about 70 speakers https://seedsconference.nz/

Two things I am excited about at the moment – releasing this very special 2 hour conversation with Tā Tipene O’Regan (listen here) on the people who shaped his life, and that The Apple Tree will be released in just a few weeks – info here.  Let me know if you’d like a copy?  Have a great day everyone!

Ngā mihi

Steven

Christchurch CBD

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 60 Cashel Street
Christchurch 8013, New Zealand

POSTAL ADDRESS:
PO Box 744
Christchurch, 8140, New Zealand

Christchurch

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
1 Rimu Street, Riccarton,
Christchurch 8041, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Rolleston

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 80 Rolleston Drive,
Rolleston, 7614, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Hokitika

PHONE: +64 3 755 8673
FAX: +64 3 755 8073

PHYSICAL ADDRESS:
26 Weld Street,
Hokitika 7810, New Zealand

POSTAL ADDRESS:
PO Box 44,
Hokitika 7842, New Zealand

Parry Field Charitable Foundation

Parry Field charitable members of NZ LAw, Global Cross Legal and SCLA

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