Glossary

Definition of terms and acronyms

Clearwood

By |2022-10-20T13:59:24+13:00March 7th, 2016|, |

Wood which is free of knots and other defects. In Radiata pine this is grown on the butt log, being the pruned part of each tree (bottom 5+ metres approx). Knot-free Radiata pine is highly sought after and therefore the most valuable portion of each tree as the wood is used for decorative, furnishing and [...]

Cost of Timber

By |2019-10-22T15:14:26+13:00July 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 |2018-10-04T08:47:31+13:00May 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 from the treecrop, 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 [...]

Deed of Assignment and Power of Attorney

By |2017-07-07T08:42:38+12:00May 25th, 2016|, |

The name of the document approved by the General Partner under which the Assignor (e.g. seller) transfers to the Assignee (e.g. buyer) ownership in the Assignor’s Limited Partnership shares. A limited Power of Attorney is granted to Trustee Executors Limited (the Supervisor) by the limited partners for administrative or procedural matters in maintaining the Limited [...]

Deed of Partnership

By |2017-07-07T08:43:15+12:00March 7th, 2016|, |

Applies to an historic investment structure used by Forest Enterprises, the ordinary partnership. The name of the governing document setting out the terms and conditions of the operation of a partnership to which an investor is a party.

Deed of Scheme Management

By |2017-07-07T08:43:47+12:00December 12th, 2016|, |

Following the registration under the Financial Markets Conduct Act 2013 of our 49 public issue Managed Investment Schemes, the Deed of Scheme Management is now the pre-eminent governing document in respect of these investments, and incorporates all the elements required under the Act.

Direct Forestry Investment

By |2017-07-25T15:20:44+12:00March 7th, 2016|, |

Investing in forestry by directly owning trees and land. Direct forestry investments normally focus on one block of land, and comprise a group of investors who collectively own the land and trees according to their shareholding. A crop of trees is planted, tended and eventually harvested from the block of land by a manager on [...]

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