20.04.2015 Views

Annual Report and Business Plan 1999-2000 - Business.govt.nz

Annual Report and Business Plan 1999-2000 - Business.govt.nz

Annual Report and Business Plan 1999-2000 - Business.govt.nz

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

ANNUAL REPORT 1998/99<br />

BUSINESS PLAN <strong>1999</strong>/00


“Putting companies on-line to do business on-line”


n<br />

o<br />

<strong>Annual</strong> <strong>Report</strong><br />

for the year ended<br />

30 June <strong>1999</strong><br />

National Manager’s Review 2-3<br />

Organisational Chart 4<br />

Management Team 5<br />

Year at a glance 6-7<br />

Principal Functions 8-9<br />

s<br />

<strong>Business</strong> Trends 10-13<br />

t<br />

n<br />

Performance Measures 14<br />

e<br />

t<br />

Finances 15<br />

Legislation 16<br />

C<br />

Publications 16<br />

The Companies<br />

Office is an<br />

operational<br />

business unit<br />

of the Ministry<br />

of Commerce


1998/99 - National Manager’s Review<br />

Evolution, rather than revolution, is the norm for most organisations. However, the past year has seen revolutionary<br />

changes for the Companies Office - both in terms of its internal administration <strong>and</strong> its external services.<br />

The year began with a substantial restructuring. The objective of it was simple – to organise the Companies Office<br />

in such a manner that it can continue to deliver new <strong>and</strong> existing services to the highest possible st<strong>and</strong>ards - <strong>and</strong><br />

at lower costs. The efficiencies of scale <strong>and</strong> effect of electronic services saw a number of services centralised to<br />

single locations. At the same time, a national on-line services team was established with staff based in all the<br />

regional offices.<br />

As a consequence of these changes, the regional offices no longer exist to replicate administration across the<br />

country, nor to anchor clients to the outdated services <strong>and</strong> practices. Rather they now provide a liaison point for<br />

client communication <strong>and</strong> support as the Companies Office rapidly moves towards the electronic age.<br />

The second revolution occurred in April with our launch of the world’s first Internet-based company incorporation<br />

service. The launch was more than a symbolic step towards a fully electronic register. It also placed the ability<br />

2<br />

to maintain <strong>and</strong> search commercial information on public registers firmly in the h<strong>and</strong>s of the business community.<br />

The result is increased speed <strong>and</strong> accuracy, lower fees <strong>and</strong> compliance costs, <strong>and</strong> greater access to our services.<br />

The spectre of the millennium bug, spiralling IT costs <strong>and</strong> the pace of change have made many people underst<strong>and</strong>ably<br />

wary of the Information Age. However during the past year we have continued to roll out incremental developments<br />

– punctuated by milestones such as the Internet incorporation service – in a manner that convinces clients that<br />

the Internet is not a case of the emperor’s new clothes. It has a permanent <strong>and</strong> critical place in the business<br />

community.<br />

I am confident that our clients have heard <strong>and</strong> accepted this message. As the report on business trends shows,<br />

the migration to electronic services throughout the year has been at a truly phenomenal rate. It reinforces my<br />

belief in the importance of complementing technological developments with a strong client communication <strong>and</strong><br />

support strategy.<br />

Client communication remains a critical part of our desire to enhance service st<strong>and</strong>ards. To that end the client user<br />

groups have continued to provide us with a valuable feedback source. At a national level the Companies Office


Client Liaison Board was exp<strong>and</strong>ed to include Claire Johnstone from the Wellington Chamber of Commerce, Justin<br />

Kerr representing the Financial Services Federation, <strong>and</strong> Adrian Jones, General Manager of Dun & Bradstreet. I<br />

am grateful to all Board members for their comment <strong>and</strong> contribution throughout the year.<br />

The second phase of the restructuring was completed at the end of the year with the establishment of a centralised<br />

enforcement team based in Auckl<strong>and</strong>. The team has a three-way focus on reviewing financial statements <strong>and</strong><br />

investment prospectuses; conducting investigations; <strong>and</strong> pursuing prosecutions <strong>and</strong> prohibitions. One of the first<br />

steps of the team has been to establish an effective underst<strong>and</strong>ing with the Serious Fraud Office for referrals <strong>and</strong><br />

information sharing between the respective agencies.<br />

In a year of so much change, it is appropriate to thank the staff of the Companies Office for achieving so much.<br />

National Manager,<br />

<strong>Business</strong> Registries<br />

Adam Feeley<br />

Combining the very best in leading technology with staff committed to providing professional <strong>and</strong> personal service<br />

to clients has proved an effective strategy for success. I am confident that the contents of this annual report<br />

demonstrates the extent of that success, <strong>and</strong> provides a clear blueprint for future success.<br />

3<br />

Companies Office <strong>Annual</strong> <strong>Report</strong>


Organisational Chart<br />

National Manager, <strong>Business</strong> Registries<br />

Companies Office<br />

Securities & Corporate<br />

Compliance Unit<br />

Auckl<strong>and</strong><br />

(includes the Registry of<br />

Friendly Societies <strong>and</strong> Credit<br />

Unions)<br />

National Processing Centre<br />

4<br />

Hamilton<br />

Wellington<br />

(includes the Insurance &<br />

Superannuation Unit)<br />

South Isl<strong>and</strong><br />

Motor Vehicle Securities<br />

Register<br />

Intellectual Property Office<br />

of New Zeal<strong>and</strong><br />

On-Line Services Team<br />

<strong>Plan</strong>t Variety Rights Office


Absent:<br />

Julie Jones,<br />

Manager,<br />

Hamilton Companies Office<br />

Mary Harris,<br />

Manager,<br />

Auckl<strong>and</strong> Companies Office<br />

Margaret Batchelar,<br />

Manager,<br />

Wellington Companies Office<br />

John McPherson,<br />

Manager, Securities <strong>and</strong><br />

Financial <strong>Report</strong>ing<br />

Joe Flynn,<br />

Manager,<br />

National Processing Centre<br />

Management Team<br />

Adam Feeley,<br />

National Manager,<br />

<strong>Business</strong> Registries<br />

Justin Hygate,<br />

Manager,<br />

South Isl<strong>and</strong><br />

Companies Office<br />

Michael Brosnahan,<br />

Manager,<br />

IT Operations<br />

Shane Keohane,<br />

Manager,<br />

Enforcement<br />

Andrew Wagg,<br />

Manager,<br />

On-line Services


Year at a Glance<br />

July<br />

Conviction of Thomas Priest<br />

for breaching Registrar of<br />

Companies’ prohibition order.<br />

September<br />

Max Resources Limited placed<br />

into statutory management.<br />

November<br />

On-line Companies Office<br />

Bulletin launched.<br />

6<br />

July August September October November December<br />

August<br />

200,000th company on the<br />

Register. Companies Office<br />

Internet “Information Library”<br />

launched.<br />

October<br />

Companies Office restructured.<br />

On Line-Services Team<br />

established.<br />

April<br />

A fire in the Christchurch<br />

archives storage site destroys<br />

obsolete corporate files.


May<br />

Dun & Bradstreet become first<br />

client to establish host-to-host<br />

Virtual Private Network with<br />

Companies Office database.<br />

January<br />

National Processing Centre<br />

established.<br />

March<br />

Archived company documents<br />

centralised <strong>and</strong> made<br />

accessible via Internet.<br />

Prohibited Directors database<br />

launched.<br />

January February March April May June<br />

7<br />

February<br />

New-look company search<br />

results launched on Internet.<br />

June<br />

New lower company fees<br />

approved by Cabinet, with<br />

“discounts” for on-line users.<br />

April<br />

On-line company incorporations<br />

launched.<br />

Companies Office <strong>Annual</strong> <strong>Report</strong>


Principal Functions<br />

The business registries under the Companies Office umbrella have a dual role in facilitating business enterprise in<br />

New Zeal<strong>and</strong> <strong>and</strong> promoting commercial confidence. They exist to provide a "public notice board" regarding the<br />

rights <strong>and</strong> interests of those who register their interests or businesses. Conversely, the registries also operate as<br />

commercial "signposts" enabling other parties to obtain relevant business information <strong>and</strong> thereby assist them in<br />

making commercial decisions. In short, the information contained on the registers enables businesses to make<br />

faster, more accurate <strong>and</strong> better-informed commercial decisions. They help minimise business risks <strong>and</strong> costs.<br />

Corporate Body Registers<br />

The Companies Office maintains <strong>and</strong> manages the registry for all corporate bodies including:<br />

New Zeal<strong>and</strong> <strong>and</strong> overseas companies;<br />

Charitable Trusts;<br />

Incorporated Societies;<br />

Friendly Societies;<br />

Credit Unions; <strong>and</strong><br />

8<br />

Building Societies.<br />

Administration of the registers falls into three distinct but related areas:<br />

1. new registrations,<br />

2. maintenance of the information contained on the registers, <strong>and</strong><br />

3. removal of defunct entities.<br />

The information held on the registers is available for public search. This may be conducted either in person at the<br />

regional office where the company is registered, or via our Internet site (www.companies.<strong>govt</strong>.<strong>nz</strong>). Aside from the<br />

convenience factor, financial incentives in the form of lower fees encourage the use of our Internet services.<br />

Motor Vehicle Securities Register<br />

The Motor Vehicle Securities Register (MVSR) is a distinct <strong>and</strong> completely electronic register of security interests.<br />

Although operating out of the National Processing Centre in Auckl<strong>and</strong>, it is accessible for search <strong>and</strong> registration<br />

purposes via the Internet. The register enables both credit providers <strong>and</strong> purchasers of motor vehicles to protect<br />

their respective financial positions by providing information as to the existence <strong>and</strong> priority of any financial<br />

advances made against a vehicle.


Insurance <strong>and</strong> Superannuation Unit<br />

The Insurance <strong>and</strong> Superannuation Unit, (based in the Wellington regional office) incorporates the work <strong>and</strong><br />

functions of the Government Actuary. The unit registers superannuation schemes <strong>and</strong> ensures compliance with the<br />

Superannuation Schemes Act 1989 by those persons responsible for managing registered schemes.<br />

The unit also administers <strong>and</strong> ensures compliance with the Life Insurance Act 1908, the Insurance Companies<br />

Deposits Act 1953 <strong>and</strong> the Insurance Companies (Ratings & Inspections) Act 1994 by life insurance <strong>and</strong> general<br />

insurance companies.<br />

Securities <strong>and</strong> Corporate Compliance<br />

In addition to management of the register, the Registrar has a number of statutory responsibilities in relation to<br />

the prudential supervision of corporate bodies <strong>and</strong> issuers of securities. The Securities <strong>and</strong> Corporate Compliance<br />

Unit in Auckl<strong>and</strong> comprises a team of specialist professionals who have three functions:<br />

1. Market supervision: The unit analyses <strong>and</strong> vets financial statements, investment prospectuses <strong>and</strong> similar<br />

information required to be disclosed under the Securities Act, Financial <strong>Report</strong>ing Act <strong>and</strong> related legislation.<br />

Registration of prospectuses permits an organisation to issue public securities, while registration of other<br />

financial information enables creditors <strong>and</strong> investors alike to assess the financial position of corporate bodies<br />

with whom they may be transacting business.<br />

2. Investigation: Where issues of non-compliance with the statutory regimes arise from the information disclosed,<br />

the unit may conduct investigations under the powers provided by the Companies Act, Securities Act or<br />

Corporations (Investigation <strong>and</strong> Management) Act. The purpose of these investigations is to consider whether<br />

any statutory breaches have occurred <strong>and</strong> whether any further compliance action is needed.<br />

9<br />

3. Enforcement: Where investigations identify serious issues of non-compliance that remain unremedied, civil<br />

or criminal sanctions may be pursued. This can include prosecutions of companies or their directors, referrals<br />

to other agencies such as the Serious Fraud Office, or commencement of director disqualification proceedings.<br />

On-Line Services<br />

One initiative arising from the Companies Office restructure was the establishment of a regionally based team to<br />

complement the increasing IT-based services <strong>and</strong> facilities of the Companies Office. The team comprises at least<br />

one on-line services consultant in each regional office. Their functions include:<br />

Ensuring the continual migration of paper-dependent clients to on-line services.<br />

Assisting on-line clients to use new on-line products as they become available.<br />

Maintaining <strong>and</strong> managing effective client relationships.<br />

Developing staff skills <strong>and</strong> support systems within the Companies Office to support on-line clients.<br />

Companies Office <strong>Annual</strong> <strong>Report</strong><br />

All consultants conduct regular seminars via organisations such as the District Law Societies <strong>and</strong> Institute of<br />

Chartered Accountants. They also regularly arrange visits to individual clients. Their email addresses are listed on<br />

the back inside cover of this report.


<strong>Business</strong> Trends<br />

The most dramatic feature of the year was the huge surge in company incorporations over the 12 month period -<br />

the highest number of company incorporations ever recorded in New Zeal<strong>and</strong>. The total number of incorporations<br />

- slightly in excess of 26,500 new companies - represented a 10% increase against 1997/98 figures <strong>and</strong> was<br />

consistent with the continual increase in company incorporations since 1989/90.<br />

Among the contributing factors were the simplified structure offered by the 1993 Companies Act, reduced fees for<br />

incorporating <strong>and</strong> maintaining companies, <strong>and</strong> the availability of electronic registration procedures.<br />

Company Incorporations per year<br />

(000’s)<br />

30<br />

A significant trend emerging from the annual<br />

10<br />

Companies incorporated<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

1989/<br />

90<br />

90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99<br />

Year<br />

statistics is the increasing longevity of New<br />

Zeal<strong>and</strong> companies. Over 95% of companies<br />

remain active after one year of trading. Of<br />

those companies incorporated at the<br />

beginning of this decade, over 50% of them<br />

are still in business.<br />

These figures rebut a common belief that the<br />

majority of companies fail in their first few<br />

years of life. They vary according<br />

to region, with 81% of Otago/Southl<strong>and</strong><br />

companies exceeding five years in business<br />

compared to 71% of companies based in<br />

Auckl<strong>and</strong> surviving beyond the five-year mark.<br />

Total companies on the register<br />

(000’s)<br />

225<br />

210<br />

195<br />

180<br />

165<br />

150<br />

0<br />

1989/<br />

90<br />

Total Companies on the Register<br />

90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99<br />

Year<br />

Average Company Life<br />

Percentage of Companies<br />

Still Trading<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

1 2 3 4 5 6 7 8<br />

9 10 11 12 13 14<br />

Years since incorporation


The commercial value of the information contained on the business registries is reflected in the 90% jump in<br />

the number of company searches undertaken this year over the same period in 1997/98. A corresponding 20%<br />

decline in requests for physical files also highlights the changes clients are making to the manner in which<br />

they retrieve company information. This trend is likely to continue as more <strong>and</strong> more on-line users become<br />

familiar with our Internet registration <strong>and</strong> search services.<br />

While company incorporations <strong>and</strong> searches increased significantly, our statistics also show a drop from the<br />

previous year in liquidations <strong>and</strong> receiverships.<br />

1997/98 1998/99 <strong>1999</strong>/00 projected<br />

New Companies 24,083 26,502 22,400<br />

Receiverships 276 219 245<br />

Court Ordered Liquidations 1,078 627 600<br />

Documents:<br />

Charges 24,214 26,172 22,000<br />

Name approvals 45,221 48,394 43,000<br />

Prospectuses 1,079 1,393 1,200<br />

<strong>Annual</strong> returns 166,731 175,716 174,000<br />

11<br />

Search Requests:<br />

Manual 78,344 64,404 40,000<br />

Electronic 85,467 162,639 181,400<br />

A higher level of borrowing was evident with security interest registrations for both the Companies Register<br />

<strong>and</strong> Motor Vehicle Securities Register showing an 8% <strong>and</strong> 6% increase respectively. Company charge registrations<br />

were slow during the first half of the year but the last six months saw a growth spurt in this area - a reflection<br />

of recent moves towards greater investor confidence.<br />

1997/98 1998/99 <strong>1999</strong>/00 projected<br />

MVSR<br />

Registration:<br />

Manual 70,353 40,056 24,750<br />

Electronic 144,801 187,765 121,250<br />

Autocheck enquiries 332,762 328,376 N/A<br />

Electronic inquiries 64,821 153,000<br />

Companies Office <strong>Annual</strong> <strong>Report</strong><br />

ISU<br />

Trustee reports 1,342 1,238 1,100<br />

Superannuation schemes 18 13 20


On-Line <strong>Business</strong> Trends<br />

The Companies Office has the goal of ensuring that all business registry services are available on-line by the end<br />

of next year. The trends over the past year have confirmed this is a realistic goal. Acceptance of the Internet as<br />

a facility for searching <strong>and</strong> registering company information is now widespread. More significantly, the majority<br />

of clients now have a preference for on-line services where an electronic option exists. The business community's<br />

reduced dependence on search agencies <strong>and</strong> paper-based technology is reflected in the high 60% of registered<br />

customers recorded during the year.<br />

One particular feature of our on-line services that clients have been quick to appreciate is flexibility. Our system<br />

is frequently accessed between 7.00-10.00 pm during the working week. There is also an obvious trend toward<br />

more direct dealings with firms in those towns where no Companies Office exists.<br />

The increased use of our on-line services is also assisted by the wider IT development that is happening across<br />

the business world. A greater acceptance of information technology, together with tangible improvements in service,<br />

such as the availability of flat rate Internet accounts <strong>and</strong> nationwide points of presence for quality ISP's, has made<br />

the Internet more accessible for all New Zeal<strong>and</strong>ers. In addition to increased use by our fee paying clients, the<br />

12<br />

site has seen an even greater increase in the level of casual use.<br />

With regard to the current level of on-line service available via the Internet the past year has seen some spectacular<br />

growth. The most obvious of these has been the on-line company incorporation facility. Within only three months<br />

of its launch, approximately one-third of all companies were being incorporated by this means. Given the significance<br />

of this development, particularly within the current legislative environment for electronic commerce, the extent<br />

of the support for electronic company incorporation is extremely heartening.<br />

Other trends worth noting for the past year include:<br />

The established on-line services continue to show a modest, but steady upward movement. Current trends<br />

suggest that these services (such as on-line name reservation <strong>and</strong> file searches) will taper off leaving a<br />

residual 15% - 20% of clients continuing to use manual services. In respect of both search <strong>and</strong> filing services,<br />

support for migration to on-line services is tapering off at around 80-85% of total use.<br />

The accessibility (ie unrestricted by time or geographical location) of the on-line service has seen a<br />

disproportionate growth in the use of Companies Office services. This is most evident in respect of company<br />

file searches where the modest reduction of paper searches of company files (down by 20%) has been offset<br />

by the number of electronic searches (up by 90%).


l<br />

l<br />

a<br />

l<br />

l<br />

l<br />

r<br />

l<br />

l<br />

e r<br />

Rate of Client Migration to Online Services<br />

Company Searches<br />

c<br />

c<br />

n i<br />

P<br />

a<br />

n i<br />

P<br />

a<br />

p<br />

o<br />

o<br />

t r<br />

e c<br />

34%<br />

p<br />

e<br />

r<br />

t r<br />

e c<br />

25%<br />

e r<br />

E<br />

66%<br />

E<br />

75%<br />

July 1998 June <strong>1999</strong><br />

Company Incorporations<br />

c<br />

e r<br />

n i<br />

o<br />

p<br />

a<br />

P<br />

100%<br />

e c<br />

E<br />

t r<br />

75% 31%<br />

25% 69%<br />

P<br />

a<br />

p<br />

13<br />

July 1998 June <strong>1999</strong><br />

Company Name Reservations<br />

c<br />

c<br />

n i<br />

n i<br />

P a<br />

o<br />

o<br />

p<br />

e c<br />

E<br />

t r<br />

75%<br />

47%<br />

53%<br />

25%<br />

P<br />

p<br />

e<br />

r<br />

e c<br />

E<br />

t r<br />

64%<br />

36%<br />

e<br />

July 1998 June <strong>1999</strong><br />

Motor Vehicle Registrations<br />

t r<br />

e c<br />

o<br />

n i<br />

c<br />

P<br />

27%<br />

a<br />

p<br />

e r<br />

t r<br />

e c<br />

o<br />

n i<br />

c<br />

P<br />

a<br />

18%<br />

p<br />

e r<br />

Companies Office <strong>Annual</strong> <strong>Report</strong><br />

E<br />

73%<br />

E<br />

82%<br />

July 1998 June <strong>1999</strong>


Performance Measures<br />

A. Statements of Service Performance<br />

1. Timeliness - To process material registration documents within one clear working day of receipt.<br />

Documents sampled 10,751 Required st<strong>and</strong>ard 99.00%<br />

Documents meeting st<strong>and</strong>ard 10,728 St<strong>and</strong>ard achieved 99.79%<br />

2. Accessibility - To ensure that the Companies Office database is available for searching on a 24 hour basis,<br />

subject to scheduled maintenance or external circumstances.<br />

Required st<strong>and</strong>ard 95.0%<br />

St<strong>and</strong>ard Achieved 99.7%<br />

B. <strong>Business</strong> Objectives<br />

1. Timeliness - To ensure company files are available for public searching immediately upon request.<br />

Documents sampled 61,100 Required st<strong>and</strong>ard 98.0%<br />

14<br />

Documents meeting st<strong>and</strong>ard 60,888 St<strong>and</strong>ard achieved 99.7%<br />

2. Quality - To ensure processed documents meet data accuracy st<strong>and</strong>ards.<br />

Documents sampled 11,623 Required st<strong>and</strong>ard 97.0%<br />

Documents meeting st<strong>and</strong>ard 11,520 St<strong>and</strong>ard achieved 99.1%<br />

C. On-line Services<br />

1998/99 1998/99 <strong>1999</strong>/00 Target<br />

Objective Target Result<br />

*as a percentage<br />

of all volumes<br />

On-line company incorporations 20% 31% 75%<br />

On-line company name reservations 50% 56% 75%<br />

On-line company searches 70% 66% 90%<br />

On-line MVSR registrations 80% 82% 90%<br />

On-line MVSR searches 20% 16% 100%


Financial <strong>Report</strong><br />

1. Expenditure <strong>and</strong> Revenue<br />

1998/99 1997/98<br />

Revenue $ $<br />

Crown revenue 410,000 258,000<br />

Third Party 18,752,332 17,947,865<br />

19,162,332 18,205,865<br />

Expenses<br />

Personnel 3,858,047 4,539,526<br />

Operating 5,371,269 4,887,449<br />

Depreciation 1,156,839 1,180,342<br />

Capital Charge 85,174 65,596<br />

Restructuring 700,487 957,092<br />

Overheads 1,847,231 1,079,621<br />

13,019,047 12,709,626<br />

Surplus/(Deficit) 6,143,286 5,496,239<br />

2. Detailed Third Party Revenue Statement<br />

Fee Type 1998/99 1997/98<br />

<strong>Annual</strong> return 6,125,536 5,786,281<br />

Incorporation 2,517,597 2,291,255<br />

Prospectus 229,534 209,290<br />

Name approval 989,697 879,985<br />

Financial Accounts 1,079,901 1,023,695<br />

Charges 1,572,101 1,430,929<br />

Amalgamations 92,632 90,188<br />

Overseas Company <strong>Annual</strong> Return 31,241 17,567<br />

15<br />

Superannuation schemes 592,658 534,922<br />

Friendly Society/Credit Union 78,996 115,906<br />

MVSR registrations 2,453,693 2,359,694<br />

Late filing 854,798 878,664<br />

MVSR certificates 499,323 397,731<br />

Searching 723,858 1,111,436<br />

Internet searching 759,244 696,614<br />

Photocopying 151,523 123,708<br />

18,752,332 17,947,865<br />

Companies Office <strong>Annual</strong> <strong>Report</strong>


Legislation Administered<br />

Companies Act 1993<br />

Securities Act 1978<br />

Corporations (Investigations <strong>and</strong><br />

Management Act) 1989<br />

Financial <strong>Report</strong>ing Act 1993<br />

Receiverships Act 1993<br />

Friendly Societies <strong>and</strong> Credit Unions Act 1982<br />

Building Societies Act 1956<br />

Charitable Trusts Act 1957<br />

Incorporated Societies Act 1908<br />

Industrial <strong>and</strong> Provident Societies Act 1908<br />

Superannuation Schemes Act 1989<br />

Life Insurance Act 1908<br />

Insurance Companies Deposits Act 1953<br />

Insurance Companies (Ratings <strong>and</strong> Inspections)<br />

Act 1994<br />

Insurance Intermediaries Act 1994<br />

Mutual Insurance Act 1955<br />

Motor Vehicle Securities Act 1989<br />

Unit Trusts Act 1960<br />

16<br />

Publications<br />

Information Pamphlets<br />

Available at regional offices <strong>and</strong> at the Information<br />

Library (www.companies.<strong>govt</strong>.<strong>nz</strong>)<br />

Incorporating a Company under the Companies<br />

Act 1993<br />

Company Names<br />

Registering an Overseas Company in NZ<br />

A Guide to the Financial <strong>Report</strong>ing Act 1993<br />

A Guide to the Insurance Companies (Ratings &<br />

Inspections) Act 1994<br />

<strong>Business</strong> <strong>and</strong> Registries Internet Service<br />

Statutory Obligations of Companies <strong>and</strong> their<br />

Directors<br />

On-line Company Incorporation<br />

Incorporating a Charitable Trust<br />

A Guide to the Incorporated Societies Act 1908<br />

Companies Office Bulletin<br />

The Bulletin is published monthly <strong>and</strong> is electronically delivered for free. Subscriptions can be arranged by emailing<br />

editor@companies.<strong>govt</strong>.<strong>nz</strong>.<br />

Back issues are available at our website.<br />

Companies Office Strategic <strong>and</strong> <strong>Business</strong> <strong>Plan</strong> 1998/99<br />

Available from the Information Library at our website.


n<br />

o<br />

<strong>Business</strong> <strong>Plan</strong><br />

<strong>1999</strong>/00<br />

Outlook for Y<strong>2000</strong> 18<br />

Strategic Objectives 19<br />

Companies Office Wins Top Award 22<br />

Directory 24<br />

t<br />

s<br />

19<br />

n<br />

e<br />

t<br />

C


<strong>1999</strong>/<strong>2000</strong> Outlook<br />

The past year has seen immense change in the Companies Office. One is tempted to spend the <strong>1999</strong>/<strong>2000</strong> year<br />

simply consolidating our successes. However consolidation is not an option. Complacency <strong>and</strong> stagnation must be<br />

avoided. Instead there must be a committed drive towards continual achievement both as a business registry <strong>and</strong><br />

a corporate regulator.<br />

As this report goes to print, the Companies Office has been announced as the winner of the inaugural KPMG<br />

Innovation Award. The judges said of our entry, "The Companies Office on-line service is a leading-edge introduction<br />

of e-commerce to New Zeal<strong>and</strong> companies, achieved with remarkable efficiency in an area where digitisation can<br />

be fraught with risk." The success already achieved will continue to act as an impetus towards further developments.<br />

Innovation<br />

The coming year will see more innovations from the Companies Office. Principal amongst these will be the introduction<br />

of on-line filing of annual returns - dramatically simplifying interaction with the Companies Office. A further groundbreaking<br />

first will be the introduction of a "real-time" online credit card payment system. The system, using 128bit<br />

encryption, will be the fastest, most secure <strong>and</strong> simplest form of electronic payment in New Zeal<strong>and</strong>.<br />

20<br />

Client Support<br />

Following on from the national on-line services team of last year, client support will be further enhanced this year<br />

with the progressive development of client "account managers." We recognise that the Companies Office has an<br />

enormous variety of clients, all with different needs. To meet these needs we will initiate a pilot program for key<br />

clients in Auckl<strong>and</strong> <strong>and</strong> Wellington. The role of the account managers will be to provide a liaison point for<br />

communicating developments within the Companies Office <strong>and</strong> acting upon client issues <strong>and</strong> concerns.<br />

Client Service<br />

The telephone remains one of our most important communication tools. Speedy, high-quality advice <strong>and</strong> information<br />

is one of the st<strong>and</strong>ards by which we are judged, <strong>and</strong> the telephone is one of the best means to meet this expectation.<br />

Accordingly, a national free-phone call centre will be set up during the year, providing identical access to Companies<br />

Office services for clients from any part of the country.<br />

Enforcement<br />

Having established a central enforcement unit at the end of last year, early success in enforcement matters will<br />

be a priority for the Office. Issues related to public confidence in investment schemes will continue to be a high<br />

priority. Similarly, we will re-assert our commitment to ensuring that delinquent directors are quickly identified<br />

<strong>and</strong> addressed through the powers of the Companies Act.<br />

Conclusion<br />

Public sector reforms over the past decade have justifiably heightened service expectations from government<br />

agencies. It is an expectation that I welcome <strong>and</strong> one that can only be fulfilled by identifiable achievements in<br />

addressing key needs. This business plan, therefore, seeks to highlight those needs. The measurement of our success<br />

in meeting those needs remains in the h<strong>and</strong>s of our clients.


Strategic Objectives <strong>1999</strong>/<strong>2000</strong><br />

Objective: Operational Efficiency<br />

Outcome: “Capturing the Investment in Information Technology”<br />

Strategies:<br />

Providing a credible government st<strong>and</strong>ard for e-commerce<br />

Increasing client use of business critical IT<br />

Exp<strong>and</strong>ing strategic private sector relationships<br />

Reducing internal infrastructure costs<br />

Key Outcomes:<br />

Electronic annual return filing available<br />

“Improved<br />

service is the<br />

hallmark of a<br />

reformed<br />

organisation<br />

– one is<br />

unlikely to<br />

occur without<br />

the other”<br />

Electronic payment by credit card available<br />

Alternative host-to-host registration systems established<br />

Financial <strong>Report</strong>ing Act information provided on-line<br />

“Autocheck” service outsourced<br />

Client migration to on-line services completed<br />

21<br />

New web-site design <strong>and</strong> functionality available<br />

Electronic register completed<br />

Companies Office <strong>Business</strong> <strong>Plan</strong>


Objective: Enhanced Client Service <strong>and</strong> Communication<br />

Outcome: “Fulfilling the Objective of Restructuring”<br />

Strategies:<br />

Using IT for more effective communication<br />

Investing in “knowledge workers” & client managers<br />

Increasing level <strong>and</strong> means of communication<br />

Key Outcomes:<br />

National free-phone call centre established<br />

Programme to reduce late fees implemented<br />

Network of client relationship managers established<br />

Companies Office Bulletin <strong>and</strong> MVSR Bulletin enhanced<br />

Client communication in media <strong>and</strong> professional journals improved<br />

Companies incorporation information package produced<br />

22<br />

Objective: Organisational Capacity<br />

Outcome: Enhancing the Ability to Deliver Operation Excellence<br />

Strategies:<br />

“Effective<br />

management<br />

involves<br />

confronting<br />

organisational<br />

culture”<br />

Heightened <strong>and</strong> relevant performance st<strong>and</strong>ards<br />

Effective implementation of client survey results<br />

Continual development of human resources programmes<br />

Key Outcomes:<br />

Graduate recruitment programme established<br />

Organisational culture <strong>and</strong> management development programmes enhanced<br />

Revised training plan implemented


Strategic Goals <strong>1999</strong> - 2002<br />

Objective 1 - Open <strong>and</strong> Informed <strong>Business</strong> Markets<br />

Providing accessible, accurate, low-cost <strong>and</strong> valuable business information<br />

Electronic companies register established<br />

Integrated <strong>and</strong> fully electronic corporate <strong>and</strong> business registries implemented<br />

“Virtual” Companies Office established<br />

Objective 2 - Corporate <strong>and</strong> <strong>Business</strong> Integrity<br />

Providing prudential supervision, timely investigations <strong>and</strong> effective enforcement<br />

Centralised Enforcement Unit established<br />

Enforcement st<strong>and</strong>ards benchmarked<br />

Objective 3 - Excellence in Service Delivery<br />

Promoting client confidence <strong>and</strong> satisfaction<br />

Ongoing review <strong>and</strong> rationalisation of Companies Office fees<br />

Ongoing improvement <strong>and</strong> implementation of client survey results<br />

23<br />

Companies Office <strong>Business</strong> <strong>Plan</strong>


Companies Office Wins Top Award for Innovation<br />

The Companies Office has won the top award in the <strong>1999</strong> KMPG Innovation Awards for its Internet-based company<br />

incorporation service.<br />

24<br />

Pictured from left: Joan Smith, NZIPA; Alan Isaac, KPMG; Adam<br />

Feeley, Companies Office; Hon Maurice Williamson<br />

Managed jointly between KPMG <strong>and</strong> the New Zeal<strong>and</strong> Institute of Public Administration (NZIPA) the biennial awards<br />

were judged on four criteria - innovation; effectiveness; the significance of benefits, <strong>and</strong> the ease with which the<br />

systems <strong>and</strong> processes can be transferred to other bodies.<br />

An independent panel of judges (chaired by Rob Laking of Victoria University) selected the finalists <strong>and</strong> chose the<br />

category winners <strong>and</strong> the supreme award winner. The judges said of the Companies Office entry, “The Companies<br />

Office on-line service is a leading-edge introduction of e-commerce to New Zeal<strong>and</strong> companies, achieved with<br />

remarkable efficiency in an area where digitisation can be fraught with risk.”<br />

“The Office has not only solved these technical problems but has apparently dealt effectively with the associated<br />

change <strong>and</strong> cultural issues. The benefits in terms of service are substantial <strong>and</strong> available to other organisations<br />

able to take up the challenge of this degree of innovation.”<br />

The Companies Office goes on to represent New Zeal<strong>and</strong> in the Biennial Commonwealth Association of Public<br />

Administration <strong>and</strong> Management (CAPAM) Innovation Awards to be held in South Africa in <strong>2000</strong>.<br />

The Companies Office is delighted to win the award, not only in recognition of the success of its technology, but<br />

also for its endorsement of electronic commerce as the way to the future for doing business in New Zeal<strong>and</strong>.<br />

It gives great impetus to our commitment to achieving a fully on-line system in the year <strong>2000</strong>.


Corporate Office<br />

Level 11<br />

Ministry of Commerce Building<br />

33 Bowen Street<br />

PO Box 10 843<br />

Wellington<br />

Tel: 04-472-0030<br />

Fax: 04-471-1534<br />

Deputy Secretary of Commerce<br />

Neville Harris<br />

National Manager, <strong>Business</strong> Registries<br />

Adam Feeley<br />

National Processing Centre & Motor<br />

Vehicle Securities Register<br />

Ground Floor<br />

Compaq Building<br />

162-164 Grafton Road<br />

Private Bag 92061<br />

Auckl<strong>and</strong> Mail Centre<br />

Tel: 09-912-7677<br />

Fax: 09-912 7787<br />

Manager<br />

Joe Flynn<br />

Auckl<strong>and</strong> Companies Office<br />

Level 5<br />

District Court Building<br />

3 Kingston Street<br />

Private Bag 92061<br />

Auckl<strong>and</strong> Mail Centre<br />

Tel: 09-912-7677<br />

Fax: 09-912 7787<br />

Manager<br />

Mary Harris<br />

Regional On-line Services Consultant<br />

Jasmin Priest<br />

priestj@companies.<strong>govt</strong>.<strong>nz</strong><br />

Hamilton Companies Office<br />

Level 1<br />

ASB Building<br />

500 Victoria Street<br />

Private Bag 3090<br />

Hamilton<br />

Tel: 07-839-5055<br />

Fax: 07-839-2647<br />

Manager<br />

Julie Jones<br />

Manager, On-line Services<br />

Andrew Wagg<br />

wagga@companies.<strong>govt</strong>.<strong>nz</strong><br />

Regional On-line Services Consultant<br />

Keith Kana<br />

kanak@companies.<strong>govt</strong>.<strong>nz</strong><br />

Wellington Companies Office<br />

Level 7<br />

Boulcott House<br />

47 Boulcott Street<br />

Private Bag 5901<br />

Wellington<br />

Tel: 04-471-1028<br />

Fax: 04-495-1254<br />

Manager<br />

Margaret Batchelar<br />

Manager (from September <strong>1999</strong> onwards)<br />

Paul Carroll<br />

Regional On-line Services Consultant<br />

Stacey Gilligan<br />

gilligs@companies.<strong>govt</strong>.<strong>nz</strong><br />

Christchurch Companies Office<br />

Level 4<br />

Cardinal House<br />

Cnr Gloucester St & Oxford Tce<br />

Private Bag 4714<br />

Christchurch<br />

Tel: 03-371-7000<br />

Fax: 03-371-7001<br />

Manager<br />

Justin Hygate<br />

Regional On-line Services Consultant<br />

Tony Music<br />

musict@companies.<strong>govt</strong>.<strong>nz</strong><br />

Dunedin Companies Office<br />

Level 6<br />

Clear Centre<br />

300 Princes Street<br />

PO Box 407<br />

Dunedin<br />

Tel: 03-479-2371<br />

Fax: 03-479-0762<br />

Manager<br />

Justin Hygate<br />

Regional On-line Services Consultant<br />

Tony Music<br />

musict@companies.<strong>govt</strong>.<strong>nz</strong><br />

Internet address: http://www.companies.<strong>govt</strong>.<strong>nz</strong><br />

Email: webmaster@companies.<strong>govt</strong>.<strong>nz</strong><br />

Internet help desk: 0508 WEB HELP

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!