Q: What is in place to safeguard Te Moata?
A: Our intention is to do all we can to preserve and protect Te Moata. All funds raised are for this purpose and will be used for the three prongs of infrastructure, paying the management team a fair rate and for ongoing predator/pest management. Selling the property would be our very last option.
Q: Who owns Te Moata?
A: In 2009, the Save Te Moata fundraising campaign enabled the Charitable Trust to purchase 42.5% of the shares. The remaining shares are held by shareholders who stepped up to ensure Te Moata’s future. The intention is that over time the Charitable Trust will increase its shareholding. As of August 2023 the Trust currently owns 52.5% of the shares. Shares have been transferred at $10,000 per share, so the Trust has been able to purchase $200,000 of shares in these intervening years, where the total number of shares in the Company is 200 and one $10,000 share is 0.5%.
According to the Shareholding Agreement of the Te Moata Guardianship Company, for the first three years after the date of the agreement any shares to be transferred were to be held at the purchase price of $10,000 per share. This time period was Dec 2009 to Dec 2012.
After that, the shareholder selling shares, could if they wished, pay for a registered public valuer to obtain a valuation of the land, and ask for a different asking price, which then would be a negotiation between seller and buyer.
Share transactions have taken place in recent years and in all cases so far the shares have been sold for the original 2009 purchase price of $10,000 per share, with no seller choosing to engage a valuer. The Charitable Trust has the overriding option to purchase any shares that become available, if it has money to purchase the shares.
In theory a shareholder could engage a valuer and benefit from an increase in land value and infrastructure upgrades but in practice, this has never yet happened. It’s fairly unlikely to happen, as the Charitable Trust would approach all the shareholders and would buy first from those who sold at the original price.
Q: Who oversees Te Moata?
The interesting structure we have at Te Moata comprises a Directors group, a group of Shareholders and a group of Trustees. This can be seen as creating more stability and security, offering some checks and balances and lessening the risk of future rogue Trustees trying to change the core purpose and functioning of Te Moata.
Q: What would happen to the money raised by if Sustain Te Moata Campaign wasn’t successful and Te Moata had to be sold?
A: Shares are held in a company so each shareholder would receive their proportion of the sale. The Charitable Trust holds 52.5% of the shares. By law, a Charitable Trust must distribute its funds to another Charitable Trust. Funds cannot be returned to donors or individuals. If this dire situation arose, the Charitable Trust would consult in depth with the Te Moata community on where to distribute funds.
Q: Would private shareholders benefit financially if the fundraising campaign wasn’t successful and Te Moata had to be sold?
A: The purchase price of the land in 2009 was 2 million dollars. Assuming the land was sold for more than that, shareholders may see some profit after paying tax and GST etc. In reality, Shareholders have had 14 years so far of no dividend, no increase in share price, very limited ability to sell shares, and lost opportunity compared to having invested their money elsewhere. The private Shareholders are major benefactors to Te Moata. They are more likely to take a hit financially than to benefit if Te Moata was sold. Many of the private shareholders are also significant regular donors to the Charitable Trust. They got involved to secure Te Moata’s future and still hold that vision.
Q: How can I find out more about the Company and the Trust?
A: If you would like up to date information on the shareholding of the company, go to the Companies Office website: https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/2374511?backurl=H4sIAAAAAAAAAC2LQQoCMRAEf5OLh33BIJ68rCC4H2gyjS64k5iZCPt7w%2BKtq6ieKp70KZetwtaxnGj5dd6KUjxgiqYp9kqhxRojSR9ZeLoVBBL0C8vUO4xvidaZjmxfxsPlMs9%2FfgSi%2B7WVXg%2F9A1Nzi454AAAA
Here is a link to Te Moata’s trust deed which is on public record: https://www.register.charities.govt.nz/Charity/CC21508