Legal

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Terms and queries about legal matters

What does being a ‘licensed manager’ mean?

By | July 29th, 2016|

Under New Zealand law, issuers, managers and promoters of registered Managed Investment Schemes (MIS) must hold a license to do so. Forest Enterprises Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets. We have met (and are required to continue to meet) [...]

What is a Managed Investment Scheme (MIS)?

By | July 29th, 2016|

Of the 61 forestry investments managed by Forest Enterprises, 49 are Managed Investment Schemes (MIS), registered under the Financial Markets Conduct Act 2013 (FMC Act) and regulated by the Financial Markets Authority. Forest Enterprises Limited is licensed under the FMC Act to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets. Generally [...]

Am I truly protected by limited liability?

By | March 7th, 2016|

Yes, you are in our Limited Partnership investments as a limited partnership is a corporate structure similar to a company which offers limited liability to investor partners. Your liability is only for what you have invested, including any outstanding Calls requested but not yet paid. You have no personal liability for any unpaid Calls of other investors. You [...]

What is the Emissions Trading Scheme (ETS)?

By | May 25th, 2016|

The ETS is a cap and trade mechanism that has the effect of putting a price on carbon (and other greenhouse gases) in an attempt to reduce the carbon emissions in New Zealand. The primary unit of trade is the New Zealand Unit (NZU). NZUs are also called carbon credits. Certain entities within the ETS [...]

Who owns the land?

By | March 7th, 2016|

Investors in our Limited Partnerships own the land as well as the tree crop through their ownership of shares in the Limited Partnership. The land is not owned by the Manager or any other third party. Under the Financial Markets Conduct Act 2013, there is a requirement for the Supervisor (or its appointed custodian) to [...]

Is there any risk of a claim under the Treaty of Waitangi?

By | March 7th, 2016|

The answer is an unqualified no. As all the forestry land in Forest Enterprises' investment schemes is private land which has not been previously owned by a state-owned enterprise, it is legally protected from any Maori claims to the Waitangi Tribunal.

Anti-Money Laundering (AML)

By | May 25th, 2016|

New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism Act 2009 requires us, as a financial services provider, to undertake due diligence on all new customers which involves gathering information about customer identity and residential address, verifying a customer's identity, and undertaking ongoing customer due diligence and account monitoring.

Cost of Timber

By | July 30th, 2018|

Cost of Timber is a technical area of New Zealand Tax law relating to deductions for certain forestry expenditure. The main purpose of section DP 11 of the Income Tax Act 2007 is to allow a deduction for certain forestry expenditure that might not otherwise be deductible. A vendor is entitled to deduct the ‘cost [...]

De minimis

By | May 25th, 2016|

When a forestry investor sells shares in an Ordinary Partnership or Limited Partnership, section HG 5 of the Income Tax Act 2007 taxes the sale proceeds, but allows a $50,000 safe harbour threshold per partnership in any 12-month period under which this taxation treatment does not apply. The $50,000 safe harbour is called the 'de minimis'.

ETS Carbon Lease

By | May 25th, 2016|

See Carbon Lease.