September two minute update
Companies Office Integration
In case you missed our big announcement earlier this month, we’ve been working with the Companies Office for some time on integrations to easily e-file director and shareholder details, plus annual returns, directly from Companyworks.
The press release is available here.
If you use Trustworks, you can manage your firms’ trustee companies through our platform at no additional charge, and will also be able utilise these features. We’ll let you know when we’re able to announce the release dates.
New precedents and workflows added to Companyworks
Workflow – Liquidation (by the Shareholders)
Notice 241 – Notice of a meeting of the directors to recommend the appointment of a liquidator
Resolution 241 – Recommendation to shareholders to appoint a liquidator
Minute 241 – Recommendation to shareholders to appoint a liquidator
Certificate 241 – Appointment of liquidator
Notice 241.1 – Notice of a special meeting of the shareholders (consideration of the Board’s recommendation to appoint a liquidator)
Shareholder Resolution 241 – Appointment of a liquidator
Minute 241.1 – Appointment of liquidator
Notice 241.2 – Notice to the shareholders who did not sign the resolution
Will your Law firm be an Airbnb or a Kodak?
Technology is going to disrupt the legal profession. So, will your firm be a disrupter, or be disrupted? Gene Turner from LawHawk has put together an e-book giving a summary of the challenges and opportunities the industry faces. It’s a great read, regardless of where you are in your legal career. You can download it for free here.
Back to basics: Why are firms making Trustworks mandatory?
Being a trustee is a risky business. We know clients don’t always understand or fulfill their obligations as trustees. This especially relates to full disclosure and agreement regarding all trust activity, by all trustees, in advance. This often results in professional trustees being involved in trust disputes that cost them dearly.
Trustworks is the world’s only multi-party trust management system.
Lots of firms are therefore making it mandatory for trusts where they’re trustee. Trustworks makes it easy for clients to engage with the trust, including all other trustees and advisors. So if they’re planning actions for the trust, other trustees find out in advance. And if clients are undertaking actions on behalf of the trust without full disclosure and/or agreement, there is evidence of ultra-vires actions.
Ask for a demonstration of Trustworks to see how it works to protect you and your firm.
It was great to catch up with so many people, and meet some new ones at XeroCon in Brisbane earlier this month.
Andrew MacDonnell from BDO Wellington was the lucky winner of the jeroboam of Moet & Chandon we gave away from a draw of people who dropped by our stand.
Following the successful webinar demonstrations last month, we’re going to be running more:
Trustworks - Wednesday 28/9 @ 9am and Thursday 6/10 @ 3pm
Companyworks - Friday 30/9 @ 3pm and Wednesday 5/10 @ 10am
Email us at firstname.lastname@example.org to let us know which webinar you’d like to attend and we’ll reply with the login details.
If these times don't work for you, email us anyway and we’ll arrange a time that does.
Company financial audits: requirements and clauses
We’ve had some firms asking us to include a clause to “not appoint an auditor” in the Companyworks AGM resolution builder, so they can use it for all clients. The law changed in 2014 removing this requirement for small companies. We’ve therefore clarified the current requirements.
Prior to 1 April 2014, companies were required to audit their financial statements unless the shareholders resolved not to appoint an auditor (s162(2) of the Companies Act). Traditionally this was included with the standard AGM minutes, which were often distributed pro-forma with the annual accounts.
However, as of 1 April 2014, with the introduction of the Financial Reporting Amendment Act 2014, this has changed.
Companies with less than 10 shareholders do not require their financial statements to be audited but may opt in to that audit requirement (see s207K) and companies with 10 or more shareholders ordinarily require their financial statements to be audited may opt out (see s207I). There are different considerations for large companies (s45 Financial Reporting Act 2013) and public companies. The opting must be done in each accounting period and must be done by the earlier of 6 months from the start date of the accounting period or the AGM held within that period (see s207H). If the AGM is within 6 months of the new year (which is quite common) then it can be done in the AGM resolution. Otherwise it must be done by separate resolution. It is important to note that in each case the opting is undertaken by way of shareholder resolution and requires 95% support.
The opting only applies for the given reporting period, so must be repeated each year where relevant.
In light of this, we are adding an opt-in clause for small companies and opt-out clause for large companies to Companyworks.
Companyworks – what people are saying...
“We have been extremely happy with Companyworks in regards to managing our client company files and annual returns. Companyworks has not only saved us an immense amount of time, but clients are responding more quickly, therefore, we are billing more quickly. The team loves it and has also found it really easy to use. We really look forward to future enhancements! Thanks Connectworks!”
- Lisa Johnston: Managing Director, SASS (Blenheim)
Quote of the month
"Once you're through changing you're through.”
- Bruce Barton