ADLS Annual Report 2020 - 2021

Annual Report

For the year ended 30 September 2021

Connecting New Zealand Lawyers

Our mission is to connect New Zealand’s lawyers and keep them at the forefront of developments in the law and legal practice.

Whether it’s contributing to the development of new legislation, informing the profession about significant new laws, or supporting the courts and the justice system to operate more effectively during the COVID-19 era, ADLS is recognised and respected for its collective knowledge, insights, and collaborative approach. We bring together the sector’s brightest in the country’s largest volunteer membership organisation for lawyers. We’re proud to serve members from across the country and to further the standards and reputation of the legal profession in New Zealand.

3

Highlights

2020/2021

Contents Collegiality Events

Membership

23

Collegiality Events Across 20 different venues In 8 cities

4,819 Memberships

1,300

total attendees

Publications

44

LawNews issues

45

e-Bulletin issues

CPD

13

President’s Report

6

CEO’s Report

10

Membership

12

Connecting with the Profession

14

Collegiality

16

Committees Update

18

Continuing Professional Development

22

New initiative underway for a stand-alone digital signing service

23

Judicial and QC Appointments

24

Staff Breakdown

28

Council Profiles

29

Financial Statements

31

On Demand packages offered 4 ADLS ANNUAL REPORT | 2021

5

President’s Report I am reflecting on a year that has been one of the most difficult and challenging for our profession, for the courts, for New Zealand, and for ADLS. We continue to deal with the ongoing impact of COVID-19 and its subsequent variants.

Aside from the immediate impact on people’s health, the pandemic has been far-reaching, leaving no business or community untouched.

Our work habits and ways of conducting business, I believe are forever changed. As a society and a profession we have adapted; we have been tested and many of us are bone

Every day I am reminded of just how proud I am to be part of this organisation.

6 ADLS ANNUAL REPORT | 2021

tired from the additional workload, relentless grind and physical disconnection from colleagues and clients.

The vaccination rollout will bring more certainty to the coming year and I look forward to the novelty of face-to-face meetings, the resumption of collegial events, and relegating technology-based meetings from compulsory to only when it suits.

Chancery Chambers Over the past 12 months our Council continued to gather more information and consult with experts to comprehensively inform our decisions and actions relating to Chancery Chambers, our beloved heritage building.

Members will recall there have been two previous, unsuccessful attempts to bring about the sale of the building. To let the matter rest would have exposed our society to unacceptable risks, and threatened our existence. As a Council, we had to do the right thing and ensure that the building wasn’t resigned to the “too hard basket” with the disastrous financial consequences this position would bring.

Council explored every option before deciding to recommend the sale; the cost of refurbishment and making Chancery Chambers compliant with new earthquake codes was beyond our skill set and financial

capacity, and no longer compatible with our core business of supporting and advocating for our members.

Outwardly, it may have seemed that over the last year, that not a lot was happening. In fact, a tremendous amount of work was happening behind the scenes, to ensure that we had the right information to take to our membership to inform the eventual vote.

While much of the action in this long consideration and communication has taken place since the end of September, our members have spoken, and given us a strong mandate to sell. A new owner is needed to restore the building to its former glory, and so the next phase in this project is to sell the building in early 2022, and search for a replacement.

My thanks to members who took the time to vote, and to those Council members and supporters who did the mahi to assemble the strong body of evidence and conduct the member outreach needed to carry the vote.

When we find our new building, it will become our new home, and I hope (in time) that members will think of it as fondly as they do Chancery Chambers.

With the building sale decision resolved, we can turn our attention to serving the more immediate needs of our members. 2022 will be the year of member outreach. Our plan is

With the building issue resolved, we can turn our attention to serving the more immediate needs of our members.

to reconnect with our membership; many of whom we haven’t seen for nearly two years.

We will be travelling right around New Zealand, meeting members and potential members, and asking the very important question; How can we be of service?

Responding to the wide needs of members, not just those from Auckland, is crucial to ADLS remaining relevant to the profession and building our membership base beyond current levels.

We will consult and get feedback from lawyers about their lockdown experience, and what the positives have been, so that we can take those learnings and develop services that will benefit all of our members.

How we serve members, and in particular how we deliver outstanding value, is our number one task. COVID-19 and lockdowns have changed how lawyers work with each other, with clients and with the courts. Some of these changes will be permanent. Our

7

services need to reflect those changes, anticipate what’s yet to come and add value where needed.

Services such as ADLS Digital Signing support remote working, and we will ensure that lawyers fully understand how innovations like this can add flexibility, and keep the wheels of commerce turning, even during the most restrictive lockdown. Building trust and acceptance of such tools within the profession and organisations like banks is key.

COVID and the courts We can be very proud of the role that ADLS members have played in supporting the courts and the justice system over the past two years.

Members have collaborated with the heads of bench, Ministry of Justice, and the Corrections department (getting together on a regular basis) to try and work out how the courts will operate in this COVID-19 era.

My thanks to everyone who has given so much, during this most difficult and challenging of years.

8 ADLS ANNUAL REPORT | 2021

There is a multitude of competing interests that have to be accommodated in dealing with the courts, and court processes. There is legislation under the Bill of Rights, the Juries Act, Courts Security Act and others, that have to be taken into account. There is no legislative mandate that makes it easy to say: “this is how the courts will operate”, and many factors have to be considered.

There is a lot of fear within the community about coming to court during this COVID-19 period. ADLS and others have put hours and hours into solving this problem, participating in working groups, giving up their family time, and preparing feedback for consideration, about how the courts will operate. As a leader and voice for lawyers we have an important role to play; gathering information and preparing submissions so that good decisions can be made. It’s a responsibility that we take very seriously, and those involved have done us proud. To everyone involved from ADLS – doing this over and above their day jobs, I might add – I say thank you very much.

In addition to COVID-19 related support for the judicial system, ADLS has two members participating in the Criminal Process Improvement Programme (CPIP); a crosssector initiative aiming to reduce the backlog of court cases by making changes across all stages of the court system. It also seeks to identify and address long-standing issues in the courts which cause delays. Our members,

Julie-Anne Kincade QC and Ish Jayanandan have contributed enormously to this large and very important project.

ADLS members were vocal in their opposition to the proposed new Sexual Violence Legislation bill. There has been a lot of misinformation and misrepresentation about this proposed new legislation and defence lawyers in particular are concerned about the erosion of the fundamental “innocent until proven guilty” right enshrined in the Bill of Rights. We are tracking the progress of the bill through the House; what’s evident from the transcripts is that a number of MPs are unclear on what the law is. As a defence lawyer with more than three decades of trial experience, I see this bill as a significant erosion of fair trial rights, and despair for the notion of justice for defendants, especially those who do not have the money or the resources to mount a full defence.

During the year we welcomed Andrew Skinner to the ADLS Council. The current Council members enjoy a collegial working relationship with the management team which makes for a positive and balanced team with complementary skill sets that allows for a good environment to work together to make effective decisions for ADLS. On the matter of our financial performance, I am pleased to report that despite the challenges and restrictions brought about

How we serve members, and in particular how we deliver outstanding value, is our number one task.

by COVID-19, ADLS is in good shape, with a strong balance sheet to carry us into the future.

My thanks to everyone who has given so much, during this most difficult and challenging of years. Every day I am reminded of just how proud I am to be part of this organisation, and how grateful I am to our members, committee volunteers, our Council, and our hard-working staff who have battled through trying times to always deliver outstanding service. I look forward to connecting with you again in the year ahead.

Sincerely,

Marie Dyhrberg QC President

9

CEO’s Report There’s no doubt that this last year has been another challenging one for businesses, the profession and society generally as we continue in the long battle against COVID-19 and emerging variants.

What was once novel – working from home, “zooming” or connecting via Teams – is now commonplace and I’m sure we all long for a time when international travel, large gatherings and even “water-cooler conversations” could happen with ease and without a second thought, and not present the concerns that they do today.

As with most organisations that are fortunate in being able to adapt, at ADLS we have become adept at transitioning our services between the work and home environments, with the main disruption being to our collegial events. In the first 10 months of this financial year, as we emerged from the lockdowns of 2020, our collegial events were extremely

10 ADLS ANNUAL REPORT | 2021

well attended as people recognised the pleasure and value of being able to connect and interact with colleagues in-person in group settings, enjoying conversation and laughter. We were fortunate that a number of fantastic events were able to be held – the standouts including Chief District Court Judge Taumaunu’s Dinner, Bill Hodge’s Dinner and the Chief Justice’s breakfasts in Auckland and Wellington.

We understand the stresses and toll of lockdowns on our members, particularly those involved in the court system. Many of you will be fatigued as workloads continue unabated, and we must work harder to maintain our physical as well as emotional wellbeing. ADLS continues to endeavour to provide support in this regard, through our CPD and collegial programs, connecting lawyers throughout New Zealand, and other tools and offerings.

This will likely be an issue that continues into the coming year, and we will work with our members and through our Outreach activities to ensure that we understand, and can deliver to, your needs.

As highlighted in last year’s Annual Report and at the Annual General Meeting, this year the Council was again focusing on the long-term viability for the membership and organisation of retaining ownership of the Chancery Chambers building. Following past

As with most organisations we are fortunate in being able to adapt, at ADLS we have become adept at transitioning our services between the work and home environments.

feedback, the Council consulted widely on this issue, to more thoroughly understand and address membership concerns. The Council also sought the expertise and advice of well-respected commercial and property lawyer, Jack Porus. The member ballot was successful and we firmly believe that the sale of the building will more effectively position ADLS for future success over the long term, for the benefit of the membership as a whole.

We are also pleased that we have been able to again deliver a sound financial result this year.

Finally, but crucially important, is to thank all the contributors to the organisation who are pivotal in ensuring our ongoing success. This includes committee members, those who have worked on developing and improving our Forms, and CPD presenters and contributors – thank you again for your generous contribution of time and

energy to make a difference not only to the organisation, but to the profession at large.

Thanks also to our members for their ongoing support, to our dedicated staff for their resilience and efforts this year, and to our President and Council for their guidance through the challenges faced.

We look forward to supporting you again next year.

Sincerely,

Sue Keppel Chief Executive Officer

11

Student Memberships

Membership outside of Auckland (Excluding students)

Auckland Outside of Auckland

Membership

Auckland

418

Membership by region (Excluding students)

As a nationally focused organisation, ADLS serves and welcomes members from all over New Zealand. Despite another challenging year, our member base has remained strong.

Auckland

Bay of Plenty

Canterbury

Hawke’s Bay

Manawatu-Whanganui

Marlborough

Nelson

Northland

Otago

Overseas

Southland

Taranaki

Tasman

Waikato

Wellington

West Coast

Other

Contrary to expectations, 2021 continued to be challenging. However, our continued computer system enhancements made for an improved member experience. We were able to build on the tools and resources developed in 2020 to improve the workfrom-home experience for our members.

This was particularly important to our Auckland members, as evidenced by the 2.67% growth in Auckland membership.

Travel restrictions meant that we were once again unable to continue with our student Outreach activities for this year.

In combination with the 647 students who graduated in 2021, there was a decrease in total student membership. However, it is of note that of those students that graduated, a significantly higher rate than is usual chose to convert to a paid first-year lawyer membership. This is a good indication of how valuable these memberships are for them. Expanding our student memberships will be a key focus for 2022.

12 ADLS ANNUAL REPORT | 2021

Outside of Auckland

147

Membership analysis 5000 4000 3000 2000

41%

44%

46%

45%

51%

46%

1000 0 FY16:

4,235

(41% outside of Auckland)

FY17:

4,427

(44% outside of Auckland)

FY18:

4,738

(46% outside of Auckland)

FY19:

5,108

(45% outside of Auckland)

FY20:

5,232

(51% outside of Auckland)

FY21:

4,819

(46% outside of Auckland)

13

Connecting with the Profession LawNews This has been another significant year for ADLS’ flagship publication, LawNews. In June, we introduced readers to our new design which transformed the publication from a newsletter format to an elegant and sophisticated legal magazine.

And, from what they’ve told us, readers are enjoying the new look. We know this because once they’d had time to absorb the changes, we undertook our most in-depth survey ever to find out what members thought about their weekly magazine.

We were heartened by the results. More than 80% of respondents rated LawNews as excellent or very good and an essential and/ or interesting read. More than two-thirds said they read at least two articles each week and

more than 65% read it on Fridays when it lands in their inboxes, or over the weekend.

We were told LawNews was “up-to-date and informative”, has “succinct and well-written articles”, “provides useful articles that can be applied to my practice”, “covers issues not covered by mainstream media”, and has “brief, to-the-point articles” which are short and “of substance”.

In terms of content, almost 100% of respondents said they were interested in the news, 82% were interested in CPD offerings and 78% were interested in reading about ADLS events.

We also discovered members have a wide range of interests outside work. The six most highly rated extracurricular activities were reading, dining out, exercising, travel, movies and wine.

This sort of feedback is gratifying to the team responsible for publishing LawNews every week. But we are not sitting on our laurels.

There is no room for complacency in the publishing game so we also asked members where we might improve.

While we loved the response from the member who told us “I don’t think that it requires improvement”, we are always trying to tweak our content and processes to improve our readers’ experience.

Among the things you’ve asked for are more committee updates, a greater range of writers, more content from the regions and more space for letters to the editor (or an online comments platform). And you’d like LawNews to be optimised for reading on mobile phones.

We have taken this feedback on board and members will see some changes filtering through in the upcoming financial year.

Content-wise, 2021 delivered some meaty issues for LawNews to tackle. And time and

14 ADLS ANNUAL REPORT | 2021

again, though we’re a weekly publication, we beat mainstream media, especially when it came to the legal issues around the pandemic.

For example, in our first issue of 2021 we called on the government, on behalf of both employers and the unions, to deliver clarity on what we believed to be a looming flashpoint around mandatory vaccination in the workplace. Among other virusrelated stories we covered the vexed issue of COVID-19 and business interruption insurance, the debate around ‘no access’ clauses in commercial lease agreements and the complex (and widely misunderstood) issue of COVID-19 clauses in sale and purchase agreements.

But 2021 wasn’t just about the pandemic.

Trust law threw up some ground-breaking court decisions. We wrote about slack cybersecurity and how it put law firms at risk. And we wrote several stories on how, under the leadership of Chief Judge Heemi Taumaunu, the District Court has embarked on a three-year transformation of the way it delivers justice.

We grappled with the biggest changes to residential tenancy law in 35 years and weighed in against the government’s plans to expand hate speech laws and to pass into law the Sexual Violence Legislation Bill, which remains in the parliamentary pipeline.

We’d like to thank everyone who has contributed to LawNews over the past year – members, readers, freelancers, ADLS staff and advertisers. Without you, we wouldn’t have a publication.

Social Media Returning to running social media purely in-house, the ADLS LinkedIn page has continued to grow healthily, with a follower growth of 23%. Facebook growth has also continued, demonstrating just over 6%.

The top-performing post on LinkedIn was about the LawNews story ‘Aussie court rules on unconscionable conduct’, written

by Richard Massey and Tim Shiels. While on Facebook, the popular event ‘ADLS Newly Suited & AUTLSS Buddy Evening’ had a series of photos shared that resonated with that following.

New Zealand Lawyers’ Directory and Find a Lawyer ADLS printed two editions of the New Zealand Lawyers Directory, one as the November 2020 edition, the other as the May 2021 edition. The directory continues to be popular with the profession with over 2,200 copies printed during the year. A large number of these directories went to law firms and organisations.

The ADLS Find a Lawyer page continues to remain popular as well as see continuous improvements for its users. Each month, the Find a Lawyer page received on average, over 3,500 visits.

e-Bulletin The Monday e-Bulletin, a free update on the NZ legal profession, distributed a total of 45 editions to its 14,000 plus subscribers.

15

Collegiality

8

9

10

11

12

13

14

15

We enjoyed a very special evening with Chief District Court Judge Taumaunu and marked the retirements and celebrated the careers of Dr Bill Hodge and Bob Eades.

We hosted lawyers’ lunches across Auckland, and in Northland, Tauranga, Hamilton and Christchurch and cocktail functions in Auckland, Hamilton, Rotorua, Tauranga, and Christchurch.

We hosted the ADLS Inaugural Annual Breakfast with The Rt Hon Dame Helen Winkelmann both in Auckland and again in Wellington – sadly we went into

The Newly Suited Committee hosted a fun Summer Quiz & Pizza Night, and the Employment Law Committee hosted its popular annual dinner at the Park Hyatt Hotel in Auckland.

1

2

3

4

16 ADLS ANNUAL REPORT | 2021

7

lockdown days before we were due to host the Chief Justice for breakfast in Christchurch.

Unfortunately, our collegiality programme this year was badly disrupted by COVID-19. Despite this, we still managed to hold 23 collegial events across New Zealand.

ADLS Dinner with his Honour Chief District Court Judge Taumaunu: 1) L-R: Shelley Turner, Karol Hadlow, Mereana Te Whata 2) L-R: Wiremu Rikihana, Tatai Reedy 3) L-R: The Rt Hon Dame Helen Winkelmann, Professor Pene Mathew 4) L-R: His Hon Judge Recordon, The Hon Justice Whata, Hannah Cheeseman 5) L-R: The Rt Hon Dame Helen Winkelmann, his Honour Chief District Court Judge Taumaunu, Ingrid Taumaunu, Marie Dyhrberg QC

6

5

ADLS Inaugural Annual Breakfast with The Rt Hon Dame Helen Winkelmann: 6) L-R: His Honour Judge Harvey, Rick Shera, Julie-Anne Kincade QC 7) L-R: The Hon Raynor Asher QC, The Rt Hon Dame Helen Winkelmann, The Hon Justice Moore

ADLS Retirement Dinner for Bob Eades: 12) L-R: Marie Dyhrberg QC, Bob Eades, Dame Judith Potter

ADLS Retirement Dinner for Dr Bill Hodge 8) L-R: The Hon Winston Peters, Dr Bill Hodge 9) L-R: Des Wood, Bill Patterson 10) L-R: Gillian Service, her Honour Judge Holden 11) L-R: His Honour Judge Recordon, The Hon Justice Toogood, James Farmer QC, Frank Godinet

ADLS Annual Employment Law Dinner: 14) L-R: Her Honour Judge Beck, Catherine Stewart, Christopher Egglestone 15) L-R: Catherine Stewart, Peter Keily, her Honour Chief Judge Inglis, Marie Dyhrberg QC, David France, Dr Bill Hodge, Graeme Colgan, her Honour Judge Beck, Penny Swarbrick

Newly Suited Summer Quiz & Pizza Night: 13) L-R: Thomas Richards, Alexander Gee, Charlotte Brent, Rachel Peters, Dayna Tan, Katherine Eichelbaum

17

Committees Update ADLS continues to operate 19 legal committees specialising in different practice areas. All committees share the same purpose in ultimately providing a benefit to the legal profession.

This year, we have approached our following report by directing our attention first to the 13 committees (comprising collectively of around 200 members) that are primarily focused on advocacy, and then to the remaining five committees that support highly valuable resources and services for the legal profession.

This year saw the Government undertake a wide range of legislative and policy reviews. The 13 committees focused on advocacy accordingly stepped up, engaging in numerous consultation processes. These committees also undertook a varied work programme to advocate for positive change on behalf of the ADLS membership in wider aspects. Like 2020, much of the committees’ work focussed on the legal and practical challenges posed by the ongoing COVID-19 pandemic. However, committees also took it upon themselves to set up a range of practical initiatives for the benefit of members and made ongoing contributions to ADLS, LawNews and CPD events.

18 ADLS ANNUAL REPORT | 2021

The five specialist committees (comprising of around 50 members), each carried out their own unique functions to serve the ADLS membership. Again, these committees worked tirelessly throughout the year, achieving remarkable outcomes which are elaborated on below.

Overall it has been a very busy and productive year for the committees whose members volunteer their time while balancing their work and family commitments. We would like to recognise and thank them for their hard work and positive attitude during what has been a challenging time.

Criminal Law Committee Convened by Marie Dyhrberg QC The committee continued to provide leadership in this practice area on behalf of members and had significant engagement with stakeholders including the Police, Ministry of Justice and the judiciary to resolve a wide range of operational issues. The committee was granted leave to intervene on behalf of ADLS in the proceedings Fawcett v Legal Services Commissioner which raises important issues concerning legal aid for serious cases. A comprehensive survey was undertaken of ADLS members who undertake legal aid work and the results have been incorporated into submissions that will be presented to the High Court.

The committee also strongly advocated for the members of the defence bar in light of increasing workload pressures and provided extensive feedback on access to justice issues including legal aid.

Parole Law Committee Chaired by Lucy Smith and Emma Priest The committee engaged in significant consultation with the NZ Parole Board and the Department of Corrections to suggest

improvements to a range of operational matters. The committee published a list of practitioners who work in this emerging area of law to foster collegiality and enable other lawyers to make referrals. An observation programme was established to enable junior practitioners who wish to undertake parole work to observe parole board hearings with committee members. An introductory CPD event on parole law was also provided to the profession and the committee strongly advocated for increased legal aid.

Employment Law Committee Convened by Catherine Stewart The committee met with the Minister for Workplace Relations and Safety to discuss a range of access to justice issues and with the Auckland Judges of the Employment Court to discuss the operation of the court and scheduling in light of the disruption caused

by COVID-19. The annual Burning Issues in Employment Law Forum was successfully held online for the first time and committee members delivered presentations on a wide range of COVID-19 related issues that affect both employers and employees. The committee also made submissions to the Rules Committee on its review to improve access to civil justice and to MBIE on its review of the law on bullying and harassment in the workplace.

Environment and Resource Management Law Committee Convened by Helen Andrews The committee monitored significant policy and legislative developments during the year and made submissions on bills including the Natural and Built Environments Bill and to government agencies such as the Climate Change Commission. It contributed to the planning and presentation of a wide range of CPD events for the profession and is preparing for the significant upcoming changes to the Resource Management Act.

Immigration and Refugee Law Committee Convened by Stewart Dalley The committee continued to work proactively with senior Immigration New Zealand management as part of a reference group focussing on COVID-19 related issues. The committee met with the Acting Chair of the Immigration and Protection Tribunal to discuss the logistics of conducting hearings remotely during the COVID-19 lockdowns and with the Ministry of Justice to discuss practical initiatives to increase access to legal representation for refugees. The committee also made comprehensive submissions on the Immigration (COVID-19 Response) Amendment Bill 2021 and sends regular email updates to ADLS members who practice immigration and refugee law.

Property Law Committee Convened by Bryce Town The committee made submissions on the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill and the Incorporated Societies Bill. It formed a sub-committee which wrote to the Retirement Commissioner raising law and policy issues typically encountered in that area and met with an official from that office to discuss feedback. It also proposed changes to the Cross-Lease Instrument and the accompanying memorandum for consideration by the Documents and Precedents Committee.

Technology and Law Committee Convened by Lloyd Gallagher The committee wrote numerous articles for an impressive special technology and law edition of LawNews as well as standalone articles throughout the year on rapidly developing technology and law-related issues.

The committee also made submissions to Parliament on the Films, Videos, and

19

Publications Classification (Urgent Interim Classification of Publications and Prevention of Online Harm) Amendment Bill and to the Minister for COVID-19 Response on the online COVID-19 vaccination passport.

Newly Suited Committee Convened by Ellen Snedden The COVID-19 pandemic meant that the committee was unable to hold a significant number of collegial events for junior members of the profession. The committee therefore turned its attention towards keeping junior members of the legal profession informed through various LawNews articles on a range of issues and also commenced engagement with the judiciary over potential changes to the use of gendered honorifics in court.

Family Law Committee Convened by Stuart Cummings The committee provided comprehensive feedback to the NZ Law Commission for its Review of Succession Law, to the Ministry of Justice on current issues with family law legal aid, and to the Police and Ministry of Justice about the service of protection orders. The committee also continues to advocate for a review of the Family Court Rules. Recognising the increased demand for legal aid as a result of the COVID-19 lockdown, the committee has developed a register of lawyers with capacity to accept legal aid referrals from other lawyers and directly from the public.

Health and Safety Law Committee Convened by Brett Harris This year the committee started formal dialogue with agencies on health and safety-related matters. Earlier this year, the committee offered feedback to the Ministry of Justice on a review of restorative justice and it continued with a planned internal review of legal practice issues in this area, advocating

20 ADLS ANNUAL REPORT | 2021

for change or improvement. It made good progress with a five year review of the Health and Safety at Work Act 2015, identifying areas which could benefit from further consideration via planned dialogue with the Minister. The committee also consulted with, and then wrote to, WorkSafe NZ proposing mutual engagement on a number of suggested interest areas in the health and safety law area.

Mental Health and Disability Law Committee Convened by Julian Hague The committee met with the Law Commission to provide comprehensive feedback on the ongoing review of the law on capacity and made submissions to Parliament on the Mental Health (Compulsory Assessment and Treatment) Amendment Bill. The committee also monitored and provided feedback on operational issues including the need for adequate interview facilities at mental health units for lawyers and their clients, the need for clear policies for clients to raise complaints while in units and access to legal aid.

Trust Law Committee Convened by Bill Patterson The committee which continued its work on documents requiring updating following the Trusts Act 2019 coming into force. This included having input into trust-related clauses appearing in ADLS documents, comprehensively reviewing the Power of Attorney and Deed for the Purposes of Delegation and completing the comprehensive review of the ADLS Deed of Trust. A sub-committee made submissions to Inland Revenue on reporting requirements for domestic trusts (in connection with both an Order in Council and an Operational Statement). It contributed significantly to CPD and wrote several articles published in LawNews.

Documents and Precedents Committee Convened by Jacqueline Parker The Documents and Precedents Committee continued to maintain more than 120 widely used and trusted legal forms to ensure that they remain current and reflect best practice. This was an extremely industrious and demanding year for the committee members (both as part of the full committee and various sub-committees) during which they committed substantial time deliberating changes to, and updating, several documents.

In addition, the committee’s thorough and precise work included continuing the comprehensive review of the Deed of Lease and completing the review of the ADLS/ REINZ Agreement for Sale and Purchase of Real Estate. The committee also commenced work on a new document, being an Off the Plan – Agreement for Sale and Purchase of Real Estate.

Courthouse Liaison Committee Convened by Christopher Foote The committee provided extensive feedback to the Ministry of Justice on health and safety issues concerning the Pukekohe Courthouse that were affecting members. The committee then had a shift of focus and commenced a review of the ADLS Historic Books and Documents Collection which is housed in the High Court Library. The committee members are using their extensive knowledge of the history of ADLS to catalogue and determine the appropriate course of action for the collection.

leases. The committee provided final written decisions to applicants, usually within a week of meeting to determine the dispute and received positive feedback from applicants for their professional and timely process.

Members Special Fund Convened by Paul Collins The committee continued to address requests for financial assistance that it received from members for a range of matters. Once again applicants provided positive feedback on the process.

Continuing Professional Development Committee Convened by Geoff Hardy The committee continued to meet in person where possible, but via Zoom during lockdowns, to oversee the scope and quality of the ADLS CPD Programme. Two new conferences were added to the calendar and there was a focus on developing new skills and leadership workshops. Whilst some of these in-person workshops were postponed due to COVID-19 restrictions, we were pleased to be able to produce the annual Cradle to Grave™ Conference in person both in Auckland and in Christchurch.

Property Disputes Committee Convened by Mark Colthart The committee continued to provide a well-informed and cost-effective means of resolving a wide range of disputes relating to property issues, including in relation to sale and purchase agreements and commercial

21

Continuing Professional Development Once again, our CPD programme was severely impacted by the COVID-19 pandemic and we were forced to postpone many of our in-person workshops and to offer our seminars via livestream only. Happily, we were able to deliver the Cradle to Grave™ Conference in person both in Auckland and in Christchurch with enjoyable days and a great turnout in both centres.

This year we extended our offerings focussing on legal skills and introduced several new workshops and webinars, including ‘Excellence in Legal Writing’, ‘Effective Client Interviewing’, ‘MS Word for Lawyers’, and, ‘Your Legal Business: Project Management Tools’. Our new, ‘Leading in Law’, series of three workshops focused on leadership skills for emerging movers and shakers.

Our conference programme saw the introduction of, the Youth Advocates Conference, and the Family Law Conference.

We continue to support practitioners as they navigate important changes in the law. Our Trusts Series covered the steps required to be ready for the implementation of the Trusts

22 ADLS ANNUAL REPORT | 2021

Act. A new series of webinars was introduced focussing on judgments of significance, bringing practitioners a speedy discussion of the implications of important judgments such as the Supreme Court’s Bathurst judgment.

As COVID-19 continues to impact the legal landscape we have provided timely CPD covering the legal implications of COVID-19 restrictions, for example, on commercial leases and guarantees and the implications of the vaccination status of workers.

Supporting practitioners’ mental wellbeing continues to be a priority with CPD covering ‘Confronting the Workplace Bully’, ‘Bully or Client: where is the line?’ and ‘Taking the Opportunity: Supporting your Team through Challenge’.

With an eye to the future and helping lawyers future-proof their practices, we examined ‘The Technological Future of Legal Practice’, and our ‘Your Legal Business’ series looked at ‘Practice Management in the Cloud: A Practical Demonstration’.

New initiative underway for a stand-alone digital signing service ADLS’ digital signing service has been a useful resource for many practitioners, particularly during lockdown conditions.

However, over time, ADLS has become mindful that the integration of the existing digital signing service with WebForms has created some barriers for many potential users who do not wish to subscribe to WebForms in order to gain access to digital signing. This limitation has culminated in a new initiative for a stand-alone digital signing service.

The key focus for this new digital signing tool is not simply to create a service that is readily and immediately accessible to all (at any time and from anywhere). Instead, a top priority for this new service is to design a highly intuitive, efficient and user-friendly experience, without compromising any of the robust security features that are in place for our existing digital signing service. This project also creates an opportunity to adopt

new technology (for example biometric ID verification) into the build.

At the risk of stating the obvious, both law and technology can be complex in their own right. When they intersect, the complexity deepens. In this project, we have embraced the challenge of distilling the complex into the simple. We look forward to releasing the result of our work which is currently anticipated to take place during the first half of 2022.

23

ª

Judicial and QC appointments

Judicial Appointments Stephen Bonnar QC, Auckland, was appointed as a District Court Judge with jury jurisdiction based in Auckland.

His Honour commenced his law career as a Crown Prosecutor with Meredith Connell where he worked from 1987 until 1992.

Following that he spent time in the United Kingdom (until 1995) working as a Senior Crown Prosecutor in London, followed by a two-year period in the Cayman Islands, where he worked in the Attorney-General’s chambers as Crown Counsel.

He returned to New Zealand in 1997, rejoining Meredith Connell as a Senior Crown Prosecutor/Partner until 2002, when he established practice as a barrister in Freyberg Chambers and was appointed Queen’s Counsel in 2014.

ª

ª

Philip Rzepecky, barrister, Auckland was appointed as a District Court Judge with jury jurisdiction based in Whangarei.

His Honour started as a law clerk with Gibson Sheat in Lower Hutt before a move to Napier as a staff solicitor with Langley Twigg and then for Russell Fairbrother.

Following a period in London in 1988/89 as in-house counsel with a maritime underwriting company he returned to New Zealand in 1990, taking up a role as staff solicitor with Macalister Mazengarb in Wellington.

Ian Carter, barrister, Lower Hutt, was appointed as a District Court Judge with jury jurisdiction based in Whanganui.

His Honour’s legal career commenced with Earl, Kent and Co before two years as a Judge’s clerk in the Auckland High Court. Following that he spent time as an associate and senior solicitor specialising in commercial and civil litigation.

He then joined Crown Law in Wellington and was there until 2013 as Crown Counsel specialising mainly in public law, civil and commercial litigation. In 2013 he commenced practice as a barrister, although shortly after was appointed as General Counsel for the New Zealand Security Intelligence Service.

From 2009 her Honour practised as a barrister, and was appointed Queen’s Counsel in 2014.

In 1991 he moved to Auckland, joining McElroy Milne and was a partner in that firm until becoming a barrister in 2004. In

24 ADLS ANNUAL REPORT | 2021

his practice as a barrister he specialised in commercial litigation and insurance work.

Her first legal role was in France as a law clerk in Paris for a few months in 1993. Her initial legal role in New Zealand was as a junior barrister with Michael Harte before joining Russell McVeagh in 1996. She was there until 2002 as a senior solicitor before joining the Public Defence Service in 2004 as a lawyer/senior lawyer.

We congratulate the ADLS members who were appointed to the bench or as Queen’s Counsel during the year.

ª

Belinda Sellars QC, Auckland, was appointed as a District Court Judge with jury jurisdiction based in Auckland.

Her Honour was admitted in 1994 and identifies as New Zealand Māori/New Zealand European/Vietnamese with iwi affiliations to Ngai Te Rangi and Ngai Tukairangi.

Following a period of secondment as Senior Crown Counsel back at Crown Law he resumed his practice as barrister.

He specialised in civil and commercial litigation dealing in contractual and property disputes, construction law, insolvency, regulatory compliance and public law. ª

Anna Fitzgibbon, barrister, Auckland, was appointed as a District Court Judge with jury jurisdiction based on the North Shore.

Her Honour’s first legal role was as a lawyer for the Service and Food Workers Union, before joining Jackson Russell, becoming a partner with that firm and establishing its employment law team. She was a part-time member of the Refugee Status Appeals Authority between 2000 and 2005 while at the same time working as a founding partner of LawWorks, specialising in civil litigation and mediation.

She set up as a barrister in 2008, was President of the Auckland District Law Society between 2009 and 2012 and Chairperson of the Auckland Community Law Centre between 2011 and 2012. After that time she was a full-time member of the Employment Relations Authority. ª

Ophir Cassidy, lawyer, Auckland, was appointed as a District Court Judge to the Waitakere District Court with a general jurisdiction warrant to sit as Youth Court Judge and to lead the Rangatahi Courts at both Hoani Waititi and Orakei Marae.

Her Honour commenced her legal career in 2002 with King Alofivae Malosi (KAM), the first Māori and Pasifika woman law firm in Manukau. She is the fifth lawyer from that firm to be appointed to the bench. In 2005 Ms Cassidy became an associate and then a partner of Manukau Law where she practised family law as a Lawyer for Child and Youth Advocate and was the principal of that firm from 2010.

Her earlier career was in education as a deputy principal in a total immersion kura in South Auckland. Her Honour was an executive member of the Family Law Section from 2013 to 2016 and the co-president of Te Hunga Rōia Māori o Aotearoa (the Māori Law Society) in 2017 and 2018. In 2020 she was appointed as counsel to assist the panel on the Waitangi Tribunal for the urgent Oranga Tamariki inquiry. She was also appointed as senior Counsel to assist on the Royal Commission of Inquiry into Historical Abuse in State and Faith-based Care. She also served as a board member of Youth Horizons Trust.

Fluent in Te Reo, her Honour’s iwi are Ngāti Porou and Ngāti Whātua ki Kaipara.

25

ª

David Clark, lawyer, Auckland, was appointed as a District Court Judge to the Auckland District Court.

Following a period of two years as law clerk and solicitor with Hesketh Henry, Mr Clark joined the firm of Wilson Wright and Co (now Wilson McKay) in 1989 and was a solicitor, associate and (from 1994) a partner with that firm.

Queen’s Counsel ª

Lynda Kearns Lynda Kearns graduated with an LLB (Hons) from Victoria University, and was admitted to the bar in 1981. She is a family law specialist.

Her career includes leading Simpson Grierson’s family law team, partnership at Gubb & Partners, and from 2004 practising as a specialist family law barrister from Bastion Chambers in Auckland, primarily focusing on relationship and trust property cases.

His Honour specialised in civil and commercial litigation dealing in contractual and property disputes, construction law, insolvency, regulatory compliance, and public law. He was also a leading commercial mediator with panel memberships with AMINZ, the Weathertight Homes Resolution Service, the New Zealand Dispute Resolution Service and the International Court of Arbitration – Sport.

Judge Clark’s tribunal affiliations are Ngāti Maniapoto and Ngāti Hāua (Taumarunui).

ª

Stephen McCarthy Stephen McCarthy graduated with an LLB from Auckland University, and was admitted to the bar in 1981. He worked initially as a litigation solicitor at Sellar Bone & Partners and Sheffield Young & Ellis. He became a partner at Price Voulk Brabant & Hogan (later Price Voulk McCarthy). In the early to late 1990s he taught a Master’s Degree course in Immigration Law through the Department of Commercial Law at Auckland University.

Laura O’Gorman Laura O’Gorman graduated with an LLB (Hons) and a BCom from the University of Auckland in 1996 and was admitted to the bar in 1997. She completed an LLM from the University of Cambridge in 1999. In New Zealand she worked at Buddle Findlay in Auckland from 1996 to 1998.

After her LLM she worked in commercial litigation at Carey Olsen Jersey LLP in the Channel Islands. Returning to New Zealand in 2001 she worked at Buddle Findlay until 2019, including 14 years as a partner.

She then joined Bankside Chambers, specialising in commercial litigation.

She is one of six New Zealand members of the International Academy of Family Lawyers, an associate member of AMINZ, and a member of the NZLS Family Law Section.

Since 2006 he has been a barrister sole at Cavendish Chambers, specialising in family law, trusts and estates. He is a member of the New Zealand Bar Association, the NZLS Family Law Section and the NZLS Property Law Section.

26 ADLS ANNUAL REPORT | 2021

ª

Laura is a member of the Rules Committee, the Restructuring, Insolvency and Turnaround Association of New Zealand, the Auckland Women Lawyers’ Association and the Legal Research Foundation. ª

Nations to provide assistance to the Khmer Rouge Trials in Cambodia.

Returning to New Zealand in 2016, she recommenced her practice as a barrister sole in Christchurch specialising in criminal defence and in 2018 was an establishing member of Walker Street Chambers. Since 2019 she has worked as Senior Counsel Assisting the Royal Commission of Inquiry into Abuse in Care. Ms Beaton serves on Te Kāhui Tātari Ture/Criminal Cases Review Commission’s interim panel of specialist advisors.

She is a member of the New Zealand Bar Association, the New Zealand Criminal Bar Association, the New Zealand Defence Lawyers Association, the Canterbury Women’s Legal Association and the Australian and New Zealand Association of Psychiatry, Psychology and Law.

Kerryn Beaton Kerryn Beaton graduated with an LLB from the University of Otago and was admitted to the bar in 1995. She worked at Eagles, Eagles & Redpath in Invercargill from 1996 to 1998 and then at Preston Russell Law as a Crown prosecutor until 2000.

Travelling to the United Kingdom, she worked at the Environment Agency of England and Wales for two years.

Returning to New Zealand in 2002 she joined Raymond Donnelly in Christchurch as a Crown prosecutor and joined the bar in 2011. From 2012 to 2014 she was the Deputy Public Defender for Christchurch.

She was then appointed by the United

27

Council Profiles

Staff breakdown

Full time employee

Part time employee

Permanent 4

Finance

4

1

Marketing and Membership

6

1

CPD & Events

2

2

Professional Services

3

CEO and Office

Temporary

Marie Dyhrberg QC

Tony Herring

Marie Dyhrberg QC is a senior barrister specialising in criminal law and appears regularly at the District Court, High Court and Court of Appeal in New Zealand. She also appears with clients before the Parole Board. Her experience and expertise were recognised in her appointment as Queen’s Counsel in 2014.

Tony joined the Wellington office of Gibson Sheat as a partner in March 2021, after 24 years with Mortlock McCormack Law in Christchurch. He practises in the areas of commercial and property law, with an emphasis on Crown property work, commercial leasing and employment law. Tony was appointed as a Notary Public in 2009.

Chris Eggleston

Craig Fisher

Chris is a barrister in Chancery Chambers, with over 25 years of experience specialising in employment law. He was admitted in 1990 and is a longstanding member of ADLS.

Craig is a consultant to the RSM New Zealand group and RSM Hayes Audit with over 28 years of public accountancy experience.

He provides external audit, assurance, and risk management and governance advice across a diverse range of sectors. Craig has a significant interest and recognised expertise in not-for-profit and charitable organisations.

Julie-Anne Kincade QC

Andrew Skinner

Julie-Anne was called to the Bar of England and Wales in 1991 and specialises in criminal law. She came to New Zealand in 2006 and initially worked for Meredith Connell, before joining the independent Bar in 2013.

Julie-Anne was appointed Queen’s Counsel in 2019.

Andrew is a partner at Martelli McKegg with over 20 years of experience working both in private practice and in-house. Andrew practices in commercial law with particular specialties in building supplies, healthcare and franchising.

Andrew is Vice-Chair of the Frame and Truss Manufacturers Association and is also a qualified Chartered Secretary and member of Governance New Zealand and the Institute of Directors.

Ellen Snedden

Michael Wallmannsberger

1

Finance

Marketing and Membership

CPD & Events

Professional Services

CEO and Office

1

1

1

Finance

Marketing and Membership

CPD & Events

Professional Services

CEO and Office

4

6

8

6

5

Vacancy 1

Staff at ADLS

28 ADLS ANNUAL REPORT | 2021

1

29

Ellen is a senior solicitor at Simpson Western specialising in relationship property and family law. Ellen serves on ADLS’ Family Law Committee and convenes the ADLS Newly Suited Committee.

Michael is an experienced cybersecurity consultant and professional director, having held a variety of governance and security leadership roles in large organisations. He is currently an independent consultant working with boards and management to address cybersecurity risk.

92

29

Financial Statements Approval of Annual Report

33

Independent Auditor’s Report

34

Statement of Financial Performance

36

Statement of Movements in Members’ Funds

37

Statement of Financial Position

38

Notes to the Financial Statements

39

31

Approval of Annual Report The Council presents the Annual Report including the Financial Statements of the Auckland District Law Society Incorporated for the year ended 30 September 2021.

Marie Dyhrberg QC

Tony Herring

President

Vice President

1 February 2022

33

Independent Auditor’s Report

Grant Thornton New Zealand Audit Limited L4, Grant Thornton House 152 Fanshawe Street PO Box 1961 Auckland 1140 T +64 (0)9 308 2570 www.grantthornton.co.nz

To the Members of Auckland District Law Society Incorporated Report on the Audit of the Financial Statements Qualified Opinion We have audited the financial statements of Auckland District Law Society Incorporated (the “Entity”) on pages 36 to 46 which comprise the Statement of Financial Position as at 30 September 2021, and the Statement of Financial Performance and Statement of Movements in Members’ Funds for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly in all material respects, the financial position of the Entity as at 30 September 2021, and of its financial performance for the year then ended, in accordance with Special Purpose Financial Reporting Framework For Profit Entities (“The Framework”) issued by Chartered Accountants Australia and New Zealand.

Basis for Qualified Opinion The Entity has land and buildings of $10,779,425 which are accounted for at fair value on the Statement of Financial Position as at 30 September 2021. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of the land and buildings as at 30 September 2021. Consequently, we were unable to determine whether any adjustments to these amounts were necessary.

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Councillors’ Responsibilities for the Financial Statements The Councillors are responsible on behalf of the Entity for the preparation and fair presentation of these financial statements in accordance with The Framework and for such internal control as those charged with governance determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, those charged with governance are responsible on behalf of the entity for assessing the Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Councillors either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the External Reporting Board’s website at: https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/auditreport-8/ Restriction on use of our report This report is made solely to the Entity’s members, as a body. Our audit work has been undertaken so that we might state to the Entity’s members, as a body, those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Entity and the Entity’s members, as a body, for our audit work, for this report or for the opinion we have formed.

Grant Thornton New Zealand Audit Limited

Other than in our capacity as auditor we have no relationship with, or interests in, the Entity.

Auckland

Emphasis of Matter

1 February 2022

We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared in accordance with a Special Purpose Financial Reporting Framework and, therefore, may not be suitable for another purpose. Our report is intended solely for the Entity’s members and should not be distributed to or used by parties other than the Entity’s members. Our Opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor’s Report thereon The Councillors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connections with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in Chartered Accountants and Business Advisers Member of Grant Thornton International Ltd.

Chartered Accountants and Business Advisers Member of Grant Thornton International Ltd.

Statement of Financial Performance for the year ended 30 September 2021 in New Zealand Dollars

Statement of Movements in Members’ Funds for the year ended 30 September 2021 in New Zealand Dollars

Note

2021

2020

$

$

Total operating revenue

2

7,899,419

6,277,981

Total operating expenses

3

(6,212,070)

(5,574,199)

1,687,349

703,782

(38,000)

-

1,649,349

703,782

Gross operating surplus

Impairment of restaurant assets

6

Surplus for the year before taxation

Note

2021

2020

$

$

Net surplus after taxation

1,244,302

516,641

Total recognised revenues and expenses

1,244,302

516,641

Members' funds at beginning of year

10

15,396,913

14,880,272

Members' funds at end of year

10

16,641,215

15,396,913

This statement is to be read in conjunction with the notes to the financial statements.

Taxation

Net surplus for the year after taxation

9

(405,047)

(187,141)

1,244,302

516,641

This statement is to be read in conjunction with the notes to the financial statements.

36 ADLS ANNUAL REPORT | 2021

37

Notes to the Financial Statements

Statement of Financial Position

1. Significant accounting policies

as at 30 September 2021 in New Zealand Dollars

Reporting entity

Notes

2021

2020

$

$

29,682

23,748

Assets Stock – legal forms & books Prepayments & other debtors

75,987

46,896

Debtors

4

551,431

635,971

Cash and short-term deposits

5

3,148,324

986,856

Term deposits

5

Total current assets

2,850,000

3,100,000

6,655,424

4,793,471

Property, plant and equipment

6

11,466,512

11,681,687

Lease inducements

7

-

19,792

Total non-current assets

11,466,512

11,701,479

Total assets

18,121,936

16,494,950

Liabilities Trade creditors

225,268

164,972

Other creditors and accruals

247,070

200,568

Employee entitlements

239,657

208,567

451,362

367,085

41,412

62,460

275,952

94,385

1,480,721

1,098,037

Income received in advance

8

Goods and services tax Taxation

9

Total current liabilities Total liabilities

1,480,721

1,098,037

Members' funds Accumulated funds

10

7,915,954

6,771,652

Asset revaluation reserve

10

7,925,261

7,925,261

Long-term property maintenance reserve

10

800,000

700,000

Total members' funds

16,641,215

15,396,913

Total members’ funds and liabilities

18,121,936

16,494,950

This statement is to be read in conjunction with the notes to the financial statements.

Marie Dyhrberg QC President

The Auckland District Law Society Incorporated (the Society) is a professional body representing the interests of its members and the legal profession in New Zealand. The Society is constituted under the Incorporated Societies Act 1908 with an effective commencement date of 1 February 2009.

The activities of the Auckland District Law Society were incorporated into the Society on 1 February 2009. Under the requirements of the Lawyers and Conveyancers Act 2006 the activities of the Auckland District Law Society were required to be incorporated when the Council resolved not to join the New Zealand Law Society. All of the assets and liabilities of the Auckland District Law Society that were not transferred to the New Zealand Law Society were transferred to the incorporated Society from 1 February 2009.

The Society is not required to prepare general purpose financial reporting under any legislation or founding constitution. Accordingly, in the absence of a special purpose framework for not-for-profit entities, the Society has voluntarily elected to adopt a Special Purpose Financial Reporting Framework for use by for-profit entities issued by Chartered Accountants Australia and New Zealand.

Measurement basis The measurement base adopted is that of historical cost, with the exception that certain fixed assets are carried at valuation. Reliance is placed on the fact that the entity is a going concern. Revenue earned is matched with expenses incurred using accrual accounting concepts.

All items of property, plant and equipment are initially recorded at cost, including costs directly attributable to bringing the assets to their working condition. Freehold land and buildings are revalued to fair value at least every five years by an independent valuer. Library books are revalued to fair value at least every five years.

Revaluations are recognised in an asset revaluation reserve for that class of asset within general reserves. If any revaluation reserve has a deficit, that deficit is recognised in the statement of financial performance in the period it arises.

In subsequent periods any revaluation surplus that reverses previous revaluation deficits is recognised as revenue in the statement of financial performance. (b) Depreciation Depreciation is provided for on a straight-line basis on all property, plant and equipment items at rates calculated to allocate the asset’s cost or valuation less estimated residual value, over the estimated useful lives. When an asset is revalued, the depreciation charge is calculated on that revalued amount from the date of revaluation.

The principal rates are: Land 0% Buildings & alterations

3-40%

Furniture 6-21% Equipment 8-67% Software Library books

40% 0%

Specific accounting polices (a) Property, plant & equipment The Society has five classes of fixed assets: Land Buildings & alterations Furniture Equipment Library books

Tony Herring Vice President

1 February 2022

38 ADLS ANNUAL REPORT | 2021

39

Notes to the Financial Statements (continued)

(c) Amortisation Amortisation is provided for on a straight-line basis over the lease inducements paid. The periods are determined by the original lease agreement term. (d) Stocks – legal forms & books Stocks – legal forms & books inventories have been valued at the lower of cost, determined on a specific identification basis, or net realisable value after due allowance for damaged and obsolete stock. (e) Debtors Debtors are stated at their cost less an allowance for any uncollectible amounts. (f) Income taxation The Society is a not-for-profit organisation and is not liable for income tax on income relating to membership activities. The Society is subject to income tax on activities outside the circle of membership. The Society accounts for taxation using the taxes payable method. Deferred tax is not accounted for. (g) Goods and services tax The financial statements have been prepared on a GST exclusive basis except for debtors and trade creditors, which are shown inclusive of GST. (h) Leases The Society leases office equipment. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are recognised in the determination of the operating surplus in equal instalments over the lease term. (i) Revenue Membership levies are recognised over the period in which they are active. Sales of goods are recognised when they have been ordered and delivered to the customer. Sales of services are recognised on the date the service takes place. Interest income is recognised using the effective interest method. Rent income is

40 ADLS ANNUAL REPORT | 2021

recognised on a straight-line basis over the life of the lease. (j) Financial instruments Financial instruments include debtors, creditors, cash balances and deposits. Financial instruments are stated in the Statement of Financial Position when the entity becomes party to a financial contract. Debtors are stated at their cost less impairment losses. (k) Cash and equivalents Cash and cash equivalents comprise cash on hand, cash in banks and cash deposits in banks. (l) Long-term property maintenance reserve The long-term property maintenance reserve was established to allow for major items of property maintenance. It is based on a 15-year long-term maintenance report prepared by Opus in 2015. (m) Assets reviewed for impairment Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is defined as the fair value less cost to sell.

Notes to the Financial Statements (continued)

for the year ended 30 September 2021 in New Zealand Dollars

2. Operating revenue

2020

$

$

894,891

859,921

Operating revenue comprises: Membership levies Interest income

57,773

84,876

Rent income

455,481

437,414

Other service revenue

6,491,274

4,895,770

Total operating revenue

7,899,419

6,277,981

Other service revenue includes commercial and non-commercial activity including continuing professional development, legal forms and digital signatures, NZ Lawyers’ Directory sales, book sales, collegial events, sponsorships, property operating expense recovery (Opex), LawNews subscribers, will enquiries and advertising.

3. Operating expenses

2021

2020

$

$

Audit fees

21,000

25,500

Bad and doubtful debts (recovery) expense

(17,872)

26,135

Buildings & alterations

82,806

73,778

Furniture

13,983

14,019

Equipment

379,518

271,778

-

20,694

476,307

380,269

Operating expenses include:

Depreciation

Library books Total depreciation

(n) Change in accounting policies There have been no changes in the accounting policies in the current period.

2021

Amortisation on lease inducements

19,792

15,833

Donations & community services

3,500

7,992

Equipment rental (lease expense)

3,400

3,658

-

21

2,297,456

2,130,550

2021

2020

$

$

Interest Salaries & wages

4. Debtors Operating revenue comprises: Debtors

575,762

681,423

Less: Allowance for doubtful debts

(24,331)

(45,452)

551,431

635,971

41

Notes to the Financial Statements (continued)

Notes to the Financial Statements (continued)

for the year ended 30 September 2021

for the year ended 30 September 2021

in New Zealand Dollars

in New Zealand Dollars

7. Lease inducements

5. Cash and deposits Bank accounts and deposits are held with major New Zealand trading banks with Standard & Poor’s credit ratings of AA-.

Lease inducements

6. Property, plant and equipment

Carrying value

$

$

$

Land

5,490,000

-

5,490,000

Buildings

6,167,889

878,464

5,289,425

75,612

35,537

40,075

At valuation

Lease inducements

8. Income received in advance 156,111

63,334

$

95,000

95,000

-

Cost

Amortisation

2,210,023

1,655,788

554,235

14,099,635

2,633,123

11,466,512

2020 Cost or Valuation

Accumulated Depreciation / Impairment

Carrying value

$

$

$

Land

5,490,000

-

5,490,000

Buildings

6,155,814

804,375

5,351,439

75,612

35,537

40,075

At valuation

At cost

Carrying value

$

$

$

95,000

75,208

19,792

2021

2020

$

$

For future Membership fees

306,294

293,409

For future CPD events

132,790

51,399

6,291

15,477

For future NZLD subscriptions

-

5,450

For future bookshop purchases

5,987

1,350

451,362

367,085

92,777

For future collegial events

Library books

Carrying value

$

Lease inducements are recorded at contribution cost less amortisation spread over the period of the tenant’s lease.

At cost Equipment

Amortisation

$

2020

Cost or Valuation

Furniture

Cost

2021 Accumulated Depreciation / Impairment

Library books

2021

The Society receives monies in advance of an event or product being available. This is recorded as a liability until performance of that event has taken place or delivery of that product has been completed.

9. Taxation

2021

2020

$

$

Income taxation due on net non-membership income

405,047

187,141

(111,726)

(65,224)

Furniture

155,444

49,351

106,093

Provisional tax payments made during the year

Equipment

1,970,351

1,276,271

694,080

RWT paid during the year

(17,369)

(27,532)

13,847,221

2,165,534

11,681,687

Total taxation payable

275,952

94,385

Chancery Chambers is a Schedule B Heritage Building which imposes certain obligations under the Auckland Council Plan. The Chancery Chambers building and land was valued for accounting purposes on 22 September 2015 by T L Esplin at Telfer Young (Auckland) Limited, an independent registered valuer, at $10,500,000. A registered first mortgage is held over the Chancery Chambers property to secure the unutilised bank overdraft facility. A valuation as at 30 September 2021 was unable to be obtained due to reasons set out in note 14.

The Society’s 2021 non-taxable membership income represented 11.33% (2020: 13.7%) of total operating revenue.

A calculation using this percentage determines non-deductible expenditure. Total net taxable income in 2021 was $1,447,504 (2020: $669,260).

At 30 September 2021 an impairment to the value of the fit-out assets of the restaurant has been assessed and recorded at $38,000.

42 ADLS ANNUAL REPORT | 2021

43

Notes to the Financial Statements (continued)

Notes to the Financial Statements (continued)

for the year ended 30 September 2021

for the year ended 30 September 2021

in New Zealand Dollars

in New Zealand Dollars

12. Financial instruments

10. Movements in Members’ funds

2021

Credit risk

Accumulated Funds

Asset Revaluation Reserve

Long–Term Property Maintenance Reserve

Total

$

$

$

$

Opening balance

6,771,652

7,925,261

700,000

15,396,913

Recognised surplus

1,244,302

-

-

1,244,302

Transfer between reserves

(100,000)

-

100,000

-

Balance at end of year

7,915,954

7,925,261

800,000

16,641,215

Accumulated Funds

Asset Revaluation Reserve

Long–Term Property Maintenance Reserve

Total

$

$

$

$

6,355,011

7,925,261

600,000

14,880,272

516,641

-

-

516,641

Transfer between reserves

(100,000)

-

100,000

-

Balance at end of year

6,771,652

7,925,261

700,000

15,396,913

Recognised surplus

2021 Cash and deposits Debtors Total credit risk exposure

2020

Opening balance

The Society is party to the following financial instruments: Cash, Deposits, Debtors, Prepayments, Creditors and Accruals.

The financial instruments which potentially subject the Society to credit risk principally consist of Cash, Deposits and Debtors. The maximum exposure to credit risk is: 2020

$

$

5,998,324

4,086,856

551,431

635,971

6,549,755

4,722,827

The fair value of the financial instruments is their carrying value as shown in the Statement of Financial Position.

No collateral is held on the above amounts.

Concentrations of credit risk The Society is not exposed to any concentrations of credit risk, as the cash and deposits are made with a number of registered banks.

Credit facilities The Society has a total bank overdraft facility of $100,000 (2020: $100,000). Of this, none has been utilised by the Society at balance date. ASB Bank Limited holds a registered mortgage over the Society’s building, Chancery Chambers, at 2 Chancery Street in regards to this facility agreement.

11. Commitments

Interest rate risk

Capital expenditure commitments: the Society had $78,143 of commitments at 30 September 2021 for books ordered, LexisNexis reference resources and system development (2020: $14,905).

The Society is exposed to interest rate risk in that future interest rate movements will affect the returns earned and the cash flows on short-term bank deposits and the interest paid on bank debts.

Operating lease expense commitments under non-cancellable operating leases: 2021

2020

$

$

Not later than one year

-

11,825

Total operating lease commitments

-

11,825

13. Related parties There are transactions between the Society and its Members in the normal course of business. The following persons were members of the Council as at 30 September 2021: Marie Dyhrberg QC, Tony Herring, Chris Eggleston, Craig Fisher, Julie-Anne Kincade QC, Andrew Skinner, Ellen Snedden, Michael Wallmannsberger.

Operating lease expense commitments are for photocopiers.

Landlord operating lease payments receivable under non-cancellable operating leases: 2021

2020

$

$

Not later than one year

147,755

391,845

Later than one year

62,160

89,398

209,915

481,243

Total landlord operating lease payments receivable

44 ADLS ANNUAL REPORT | 2021

2021

2020

$

$

President's honorarium

51,600

77,793

Non-lawyer Council members' remuneration

30,000

30,000

President's expenses

1,436

1,289

Council members' expenses

4,912

6,416

Council members’ expenses are primarily for non-Auckland members’ travel and accomodation whilst engaged on Council business.

45

Notes to the Financial Statements (continued)

for the year ended 30 September 2021 in New Zealand Dollars

14. Contingent liability In October 2019, a detailed seismic analysis of Chancery Chambers, undertaken at Auckland District Law Society Incorporated Council’s instigation, classified it as an earthquake-prone building under the Building Act 2004. As per the Building Act 2004, Auckland is classified as a low-risk zone and as such all required seismic restraint work should be completed within 35 years of receiving an earthquakeprone notice from Auckland Council. The full extent of costs required to complete the seismic strengthening within the next 35 years is not yet known to Auckland District Law Society Incorporated but is believed to be significant (2020: Consistent).

15. Events after balance date Members were notified on 29 October 2021 that a postal ballot at the direction of Council will be held in accordance with Rule 25 of the Society’s rules. The resolution was “the Council may take all necessary steps to sell Chancery Chambers on terms it considers to be in the best interest of the society”. The Ballot closeed on 19 November 2021 and after counting, was declared passed.

There were no other events occurring after balance date that impact on these financial statements (2020: Consistent)

16. Funds administered by the Society These funds are administered by and do not belong to the Society and as such have not been recognised in these financial statements.

Members’ Special Fund The Members’ Special Fund is held by a separate trust and is not available for the Society’s general operating purposes. Its use is restricted to specified purposes and the funds are controlled by a committee separate from the Council of the Society.

2021

2020

$

$

Balance at beginning of period

361,516

364,753

Interest received, net of RWT

128

960

(9,437)

(8,000)

650

675

Changes to provision for bad debts

800

3,200

Expenses

(68)

(72)

353,589

361,516

2021

2020

Grants extended Recovery

Balance at end of year

Members' Special Fund bank account Net loans to members after provision for doubtful debts Balance at end of year

46 ADLS ANNUAL REPORT | 2021

$

$

353,589

361,516

-

-

353,589

361,516

Chancery Chambers 2 Chancery Street, Auckland Central Auckland 1010 PO Box 58 Shortland Street, Auckland 1140 DX CP24001 Phone: 09 303 5270, Fax: 09 309 3726 Email: reception@adls.org.nz www.adls.org.nz