Good Business: Growing a Business starts with Strong Foundations

Starting a new business venture with other people can be a very exciting time, filled with good intentions, optimism and possibilities. It is also the perfect time to get your foundation or constitutional documents in order. Whether this is a shareholder’s agreement, a partnership agreement, a joint venture agreement or otherwise, the best time to get these foundation or constitutional type of documents prepared is right at the beginning of your business venture and the next best time is right now!

These foundation documents generally set out how the parties are going to work together, how decisions will be made and how the rewards are to be shared. These documents can also cover what happens when the parties cannot agree or if one party wants to exit the arrangement. By their very nature, these documents are best prepared when everyone is happy and things are going well – as it can be difficult to sort out these issues when things are not going well.

At Horsley Christie, we have one of the largest and most experienced commercial and property teams in Whanganui. We can help you to construct and shape these foundation documents to suit your individual needs. A lot of potential problems can be avoided with good planning and good systems. Well-crafted foundation or constitutional documents help set the respective parties expectations and will go a long way to manage those expectations going forward to ensure the parties remain on the same page.

Turning to the contents of the documents, there are a range of matters to consider, including but not limited to the following:

–              How will the business operate?

–              How will decisions be made? And how will they be recorded?

–              How will funding be arranged?

–              How will distributions be calculated? And when will they be paid?

–              What are the parties obligations to the business?

–              What are the parties obligations to each other?

–              When can one party bind the business or the other party?

–              What happens if the parties cannot reach an agreement?

–              What happens if one party wants to exit?  Or you want to introduce another party?

–              Will both parties do the same amount work or contribute the same amount of capital? And if not, how will you value the reward for effort and the reward for investment?

While some of these issues can be difficult to raise and perhaps uncomfortable to talk about at the beginning of your business venture, it is absolutely in your interest to still have that discussion. In our experience, those conversations are best had at the outset and do not get any easier if the parties are starting to disagree.

If you already have these documents in place, that is a good start but it is not the end of the matter. It is still really important that you regularly read and review these documents to ensure they are still appropriate, that they still reflect how you are actually carrying on your business and that they are compliant with any relevant legislation.

Your foundation and constitutional documents need to be living documents that are capable of growth, adapting to changes in law and to changes in the way you operate your business. Regular reviews with quality legal advice will ensure your business has solid foundations to help support future success!

If you have any questions regarding any of the above or if you would like an appointment to discuss setting up your own foundation documents or to review your existing documents, please telephone the Horsley Christie Lawyers for an appointment 06 349 0090 or email

Mike Neil LLB


Member Offer: UCOL Business Scholarships 2022

Develop your leaders, grow your talent, and supercharge your business.

100% subsidised learning with recognised qualifications available now to Whanganui Chamber of Commerce members thanks to our partners UCOL and their 2022 Business Scholarships offer.

Teaming up with Chambers of Commerce and business network partners across the UCOL rohe of Whanganui, Manawatu, Wairarapa, Horowhenua and Kapiti, UCOL are offering 100 scholarships to businesspeople like you who believe in investing time and effort into the growth and future sustainability of their businesses, and who want to create a bright future for themselves and their community.

This year’s Scholarship offer covers 100% of course fees across seven qualifications, and also includes the Student Services Levy.

For you and your people, your investment is time and a commitment to learning. The UCOL programmes on offer use flexible-learning and blended-learning (check course offerings) resulting in more effective, more efficient learning that you can make work with other commitments.

Programmes on offer:

Note: all programmes can be taken 1 year full-time or 2 years part-time
• New Zealand Diploma in Business (Level 5)
• New Zealand Diploma in Cyber Security (Level 6)
• Graduate Diploma in Project Management (Level 7)
• Graduate Diploma in Business Information Systems (Level 7)
• Graduate Diploma in ICT (Level 7)
• Graduate Diploma in Operations and Production Management (Level 7)
• Graduate Diploma in Accounting (Level 7)

Whanganui Chamber Community – don’t delay!

Scholarships are limited and offered on a first-come-first-served basis, so if you this is of interest to you, move quickly to secure your place.

Scroll down to find links to more information and/or contact UCOL direct.

In brief:

The Numbers:
• 100 Scholarships available across 5 rohe
• 7 Programmes to choose from
• 1 year full-time or 2 years part-time study available

APPLICATIONS CLOSE Friday 15 July 2022

Get more information here:

UCOL Business Scholarships promotion information and links

UCOL Business Scholarships FAQ sheet

Inland Revenue Update 5 May 2022

Update from IRD current as at 5 May 2022:

  • Delays in Response Times
  • COVID-19 Support Payment Reminder
  • Small Business Cashflow Scheme (SBCS) loan interest reminder and repayment notifications
  • Pre-population of property info in 31/03/2022 income tax returns ‐ IR833
  • 2022 End of year process – Individual income tax assessments

Scroll down to see more.

Delays in response times

  • Currently, we are in a high demand period mostly due to COVID-19 and priority is being given to Covid-19 Support Payment applications.
  • It is taking longer than usual to answer calls and respond to web messages. Please don’t send follow-up/reminder messages as this adds to the backlog that we are currently experiencing.
  • We appreciate your patience and are doing our best.

COVID-19 Support Payment reminder

  • COVID-19 Support Payment applications close today (5 May 2022).
  • Any draft COVID-19 Support Payment applications that have not been submitted will be deleted after this date.

Small Business Cashflow Scheme (SBCS) loan interest reminder and repayment notifications

  • For customers who took out the Small Business Cashflow Scheme (SBCS) loan when it first became available in May 2020, their 2-year interest-free period and subsequent repayment period is fast approaching.
  • Customers will receive an SMS or myIR web message reminder 7 days before their 2-year loan anniversary date. These start from 5 May 2022. Interest reminder letters and payment plans will be sent to tax agents/intermediaries if the mail redirect is on. Otherwise, these will be sent directly to you. These communications will publish to myIR or be sent by paper where there is no web logon.
  • Payment plans will be sent on their 2-year loan date via myIR, from 12 May 2022.
  • Customers can change their payment dates or amounts by contacting us in myIR prior to their first scheduled repayment to discuss options. Tax agents/intermediaries can do this on their clients’ behalf if they are linked. IR will make contact with the authorised borrower to confirm the arrangement amendments.

Pre-population of property info in 31/03/2022 income tax returns ‐ IR833

  • We recently made some changes to the IR833 Bright-line residential property sale information return attachment. This form will show in your return if we think you have a bright-line sale and will now pre-populate property information including title number, address, date of purchase and date of sale if you file in myIR or the income tax return gateway service in your software.
  • You can still manually add this form in myIR/software if you have a property sale that needs to be declared – you will just need to add the relevant property information manually.
  • You can now see a table of property sales in myIR for the sales we notify you about. You can advise us anytime during the year if the property is excluded from the bright-line rule.
  • Read more information on the exclusions here. 
  • Alternatively, you can continue to advise us with end of year filing by removing the pre-populated IR833 record from the return.
  • The table of property sales can be found on your Income tax account panel…>More…>My income section…>Manage bright-line property sales.
  • We will continue to notify you when we believe you have a sale that meets the bright-line rule, and the bright-line letter will redirect to tax agents where appropriate. On receiving this letter, you or your tax agent can let us know in myIR if the sale doesn’t fall within the bright-line rule, and we will update our records.

2022 End of year process – Individual income tax assessments

  • From the end of May through to the end of July we will be issuing automatic income tax assessments for most New Zealanders.
  • All individual clients of tax agents (excluding those with no reportable income and IR3 filers) will receive an ‘Income tax – more information request’ letter.
  • If your income tax mail is being redirected to your tax agent, they will receive this. Otherwise, it will go directly to you.
  • For more information on the end of year process click here.
  • To find out more about tax agents click here.

For questions and more information contact IRD directly.

Fair Pay Agreements …. or are they?

The New Zealand Chambers of Commerce are uniting in vocal opposition to the Government’s plan to introduce  “Fair Pay Agreements”.

Our initial feedback to Minister Wood include the following:

FPAs are a misnomer. They are inherently unfair to both employers and workers and signal an unnecessary and unwanted return to the past.

Our members cannot support this Bill which will empower a small percentage of a sector group to dictate the pay and conditions of the majority to the detriment of employers and workers.

We all accept the aspirations to do better for workers and to implement overdue reform in some sectors, but there are better ways, more acutely tuned to market realities, to reward and grow a skilled workforce that will take New Zealand into the future.

One size does not fit all and fails to recognise and reward productivity, skills and fit for the individual enterprise’s size, structure, location and resources.

Good employers are innovative in creating workplaces where wellbeing and fairness underpin their way of operating and are creating prosperous futures that value skills, adaptability, love of learning and productivity, beyond an hourly wage rate.

We have moved a long way from compulsory and combative them-and-us unions versus employers.

We, as business owners and leaders, will not be silent. We will fight for a better way to lift productivity, pay for excellence and innovation and grow skills to sustain our economy.

Compulsory Fair Pay Agreements are not the way to achieve the changes we need.

We would welcome working as partners with Government in finding the way forward to achieve a resilient business environment with a diverse, skilled, and productive workforce that is valued for the individual contribution they make.

Speak to us if you have questions or feedback:

Good Business: Co-ownership arrangements as investor or getting on the property ladder

Getting on the first rung of the property ladder is becoming harder than ever to achieve. The reasons why are well known — sky-rocketing house prices, higher rents and costs of living, tight lending restrictions and a shortage of housing stock. This perfect storm presents a living nightmare for first home buyers. Is it time for prospective homeowners to give up on the Kiwi dream of home ownership? If not, there are other options.


The Kiwi dream
There are significant social and economic benefits to communities from the security that comes with having an established place to live. It brings freedom from the uncertainty and stresses of renting coupled with anxiety as house prices continue to rise. These benefits make the housing dream worth chasing and have driven private companies, the government and charities to provide innovative solutions to help Kiwis (with a variety of incomes and house price brackets) into home ownership. Necessity is, after all, the mother of invention.


Co-ownership or shared ownership is a practical tool to get on the property ladder: by ‘shared’ we don’t mean pooling funds and cramming into one house with several other families (or your closest friends) bunk-bed style.

Co-ownership means buying the percentage of a property that you can afford now, with a silent investor partner providing the balance. Together you ‘co-own’ the property in those shares. The home is the one owner’s to enjoy (occupying owner) while the other owner has funds invested in property (investor owner).

The occupying owner pays a fee or interest to the investor owner for the portion of funds invested and in time the occupying owner can buy out the investor owner.


Filling the deposit gap
For many prospective buyers, their inability to save a large enough deposit is the main barrier to getting a loan from a bank. Most are quite capable of servicing a mortgage but cannot save for the required (and ever-increasing) deposit amount because life gets in the way.

The gap between the deposit saved and the deposit required is just too wide for many. This is where co-ownership initiatives help people who don’t fit mainstream mortgage criteria.

Buying a first home provides Kiwis (who have been in KiwiSaver for at least three years) a ‘single use’ key to unlock those contributions which can assist towards 5% of a house deposit. If the occupying owner has 5% of a deposit, they can use the investor owner’s contribution to top up the deposit required for regular retail lending — without having to resort to a second-tier lender.


If the worst happens – what next?
As well as the upsides of owning property, what happens if the property market dips, personal financial situations change or relationship break ups occur?

If things really go belly-up, the house can be sold, the mortgage repaid and the co-owners share in the loss (or the gain) in the percentage ratio that they contributed at the outset. Or there may be other alternatives by negotiation.


In high-price areas such as Auckland (actually, almost anywhere in New Zealand now) and without access to a ‘bank of Mum and Dad’ to solve the deposit gap, a co-ownership arrangement may be the best opportunity for prospective buyers wanting to escape private rentals and have a place to call their own. It is also an alternative investment opportunity to those with available funds.

Consider this property ownership and investment option and keep the dream alive. It may be you, or someone you know, who could use a helping hand onto the property ladder right now.
For more information contact Joamari van der Walt


Joamari Van der Walt │ LLB │ BComm(Economics)-Law (Stellenbosch) │


Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.