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
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country, nor to anchor clients to the outdated services 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