TTWM - Decision making

Owner decision making requirements
(based on Tabled version of the Bill)

Note: This is a demonstration only App as the Bill was abandoned.

Introduction

One of the benefits claimed for the Māori land reforms is a streamlining of decision-making.

This section brings together the various decison making requirements into one place to allow users to more easily determine the requirements proposed in the Bill for authorising user-defined actions. The first part relates to the participation requirements (ie quorum) while the second shows the support thresholds for various specified types of decision.

Select the applicable land ownership type and then the number of owners (this option will appear when you have selected the first).

The number required for a quorum at a meeting of owners:

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See decisions with minimum thresholds.

Note: The decision making criteria shown below are the default positions in the absence of a governance agreement and can be varied in an owner approved governance agreement.

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Decision requirements:

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Failure to meet quorum requirements
There is a process to convene a follow-up meeting in the event the participation requirements not being met. Tick on the box below to see the relevant section.

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See how this applies to your situation.

Some of the participation thresholds are a percentage of all owners. This calculator can be used to work out what that means when there are contact details for less than 100%.

Total shares (req'd)

Contactable owners (by no of shares)

Alternatively: % contactable

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Target participation (%):

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27 Land may cease to be Māori freehold land by declaration

1 The court may, on application, make an order declaring that a parcel of land ceases to be Māori freehold land.

2 The application may be made by 1 or more owners of the land.

3 The court must not make an order unless it is satisfied that—

(a) the land is not held by a class of collective owners; and

(b) the land is not managed under a governance agreement; and

(d) no part of the land is subject to a kawenata tiaki whenua; and

(e) the land does not contain any wāhi tapu or wāhi tūpuna; and

(f) the application is agreed to by owners who together hold a 75% or more share in the land; and

(g) the purpose of Parts 1 to 9 can be achieved more effectively if the land does not have the status of Māori freehold land.

4 An order must specify the parcel or parcels comprising the land.

5 If an order is made, the parcel of land that ceases to be Māori freehold land remains private land, but is not Māori land.

6 See section 103 for how land that is managed under a governance agreement may cease to be Māori freehold land on the change of ownership from a sale or an exchange.

48 Conversion to collective ownership of Māori freehold land

1 A parcel of Māori freehold land that is owned by tenants in common or joint tenants may be converted to collective ownership, but only in accordance with this section.

2 A decision to convert the ownership of the land must be agreed to,—

(a) for a parcel owned by tenants in common, by owners who together hold a 75% or more share in the land; or

(b) for a parcel owned by joint tenants, by all of the owners.

3 The decision must define the class of collective owners in 1 of the following ways:

(a) as the named persons who, immediately before conversion, were the living owners of the land or were entitled to succeed to any deceased owner’s interest in the land, and the descendants of the named persons:

(b) as named persons who are associated with the land in accordance with tikanga Māori, and their descendants, as long as the class also includes every person described in paragraph (a):

(c) as the descendants of 1 or more named tūpuna, as long as the class also includes every person described inparagraph (a).

4 The decision may include 1 or more other requirements as to the terms of the collective ownership.

5 The decision has no effect unless the court, on application by an owner of the land, makes an order of confirmation that the conversion complies with the requirements of Parts 1 to 9.

102 Exchange of parcel

1 A parcel of Māori freehold land may be exchanged for something else, but only in accordance with—

(a) this section; or

(b) section 103 (where there is no reasonable prospect of obtaining the required level of owner agreement).

2 However, a parcel cannot be exchanged if it is owned by—

(a) a class of collective owners; or

(b) the trustees of a whānau trust or other trust (other than a governance body).

3 The land to be exchanged (land A) must be—

(a) a parcel of Māori freehold land; or

(b) 2 or more parcels of Māori freehold land with the same beneficial ownership and the same status as land subject to, or not subject to, Part 2 of the Maori Affairs Restructuring Act 1989.

4 Land A must be exchanged for a parcel of either of the following types of land, or 2 or more parcels of the same type and with the same beneficial ownership and the same status as land subject to, or not subject to, Part 2 of the Maori Affairs Restructuring Act 1989 (land B):

(a) private land other than Māori customary land; or

(b) Crown land that is subject to Part 2 of the Maori Affairs Restructuring Act 1989.

5 If a parcel of land A, or a parcel of land B that is Māori freehold land, is managed under a governance agreement, the exchange must be agreed to by the governance body that manages the parcel, but only after the body complies withsection 104.

6 If a parcel of land A, or a parcel of land B that is Māori freehold land, is not managed under a governance agreement, the exchange must be agreed to by owners who together hold more than a 50% share in the parcel.

7 If a parcel of land B is not Māori freehold land, the exchange must be agreed to as follows:

(a) for private land, by the owners of the parcel:

(b) for Crown land, by the Minister responsible for the parcel or the registered proprietor of the parcel.

8 The beneficial ownership of land must be exchanged intact. That is, the beneficial ownership of land on each side of the exchange must, after the exchange, match the beneficial ownership, before the exchange, of the land on the other side.

9 The exchange must be conditional on the court making an order of confirmation that the exchange complies with the requirements of Parts 1 to 9.

10 If land is exchanged under this section, the land on each side of the exchange becomes land of the status that was held by the land on the other side of the exchange, whether that status is as land of 1 or both of the following types:

(a) Māori freehold land:

(b) land subject to Part 2 of the Maori Affairs Restructuring Act 1989.

107 Agreement to certain dispositions of parcels under enactments

1 This section applies to a disposition in relation to all or part of a parcel of Māori freehold land that—

(a) may be made or agreed to under an enactment other than Parts 1 to 9, but is not required by that enactment to be made or agreed to; and

(b) is not restricted by another provision in this Part.

2 The disposition may be made or agreed to, but only in accordance with this section.

3 The disposition must be agreed to—

(a) by the governance body, if the land is managed under a governance agreement; or

(b) by owners who together hold a 75% or more share in the land, in any other case.

4 The disposition must be conditional on the court making an order of confirmation that it complies with the requirements of Parts 1 to 9.

110 Actions required for boundary adjustment

1 This section sets out the actions that must be completed for a boundary adjustment to a parcel of Māori freehold land.

2 A survey plan must be prepared that defines the new parcels—

(a) in compliance with the applicable survey standards; and

(b) so that no new parcel becomes landlocked land (as defined by section 319).

3 An allocation scheme must be prepared that allocates the beneficial ownership of each new parcel so that it matches the beneficial ownership, before the boundary adjustment, of the existing parcel from which the new parcel primarily derives.

4 The boundary adjustment, including the survey plan and allocation scheme, must be agreed to as follows:

(a) in respect of the parcel of Māori freehold land,—

(i) if the parcel is managed under a governance agreement, by the governance body; or

(ii) if the parcel is not managed under a governance agreement, and the adjustment changes the area of the parcel by 2% or more, by owners who together hold more than a 50% share in the parcel; or

(iii) if the parcel is not managed under a governance agreement, and the adjustment changes the area of the parcel by less than 2%, by owners who together hold 75% or more of the participating owners’ total share in the parcel; and

(b) in respect of the adjoining parcel of land,—

(i) for Māori freehold land, in accordance with paragraph (a):

(ii) for other private land, by the owners of the land:

(iii) for Crown land, by the Minister responsible for the land or the registered proprietor of the land.

5 The boundary adjustment, including the survey plan and allocation scheme, must also be agreed to by—

(a) the grantor of each easement or other interest that benefits an existing parcel; and

(b) the grantee of each lease, licence, mortgage, easement, or other interest that burdens an existing parcel.

6 The boundary adjustment must be conditional on the court making an order of confirmation that the boundary adjustment, including the survey plan and allocation scheme, complies with the requirements of Parts 1 to 9.

7 If the boundary adjustment includes land that is not Māori land, that land must be treated as Māori land for the purposes of section 11(2) of the Resource Management Act 1991 (so that section 11(1) of that Act does not apply).

8 If any lease, licence, mortgage, easement, or other interest that affects an existing parcel is to be varied because of the boundary adjustment (for example, to change the area to which it applies or to apportion rights or interests under it), the variation must be made conditional on an order of confirmation being made for the boundary adjustment.

113 Actions required for partition (other than by mortgagee)

1 This section sets out the actions that must be completed in order to partition an existing parcel (other than by a mortgagee).

2 A survey plan must be prepared that defines the new parcels—

(a) in compliance with the applicable survey standards; and

(b) so that no new parcel becomes landlocked land (as defined by section 319).

3 An allocation scheme must be prepared that allocates the beneficial ownership of the new parcels in accordance withsection 114.

4 The partition, including the survey plan and allocation scheme, must be agreed to as follows:

(a) for land managed under a governance agreement, by the governance body:

(b) for other land, by owners who together hold more than a 50% share in the parcel.

5 The partition, including the survey plan and allocation scheme, must also be agreed to by—

(a) the grantor of each easement or other interest that benefits the existing parcel; and

(b) the grantee of each lease, licence, mortgage, easement, or other interest that burdens the existing parcel.

6 If the existing parcel is managed under a governance agreement, the governance body must have a land management plan that complies with section 210 and that authorises the particular partition.

7 The partition must be conditional on the court making an order of confirmation that—

(a) the partition, including the survey plan and allocation scheme, complies with the requirements of Parts 1 to 9; and

(b) the court is satisfied that the partition will assist the owners to retain, occupy, or develop their land; and

8 If any lease, licence, mortgage, easement, or other interest that affects the existing parcel is to be varied because of the partition (for example, to change the area to which it applies or to apportion rights or interests under it), the variation must be made conditional on an order of confirmation being made for the partition.

118 Actions required for amalgamation

1 This section sets out the actions that must be completed in order to amalgamate existing parcels.

2 A survey plan must be prepared that defines the new parcel in compliance with the applicable survey standards.

3 An allocation scheme must be prepared that allocates the beneficial ownership of the new parcel in accordance withsection 119.

4 The amalgamation, including the survey plan and allocation scheme, must be agreed to in respect of each existing parcel as follows:

(a) for Māori freehold land managed under a governance agreement, by the governance body:

(b) for other Māori freehold land, by owners who together hold more than 50% of the participating owners’ total share in the parcel:

5 The amalgamation, including the survey plan and allocation scheme, must also be agreed to by—

(a) the grantor of each easement or other interest that benefits an existing parcel; and

(b) the grantee of each lease, licence, mortgage, easement, or other interest that burdens an existing parcel.

6 If the existing parcels are managed under a governance agreement, the governance body must have a land management plan that complies with section 210 and that authorises the particular amalgamation.

7 The amalgamation must be conditional on the court making an order of confirmation that—

(a) the amalgamation, including the survey plan and allocation scheme, complies with the requirements of Parts 1 to 9; and

(b) the court is satisfied that the allocation scheme is fair and equitable to all owners.

8 If any lease, licence, mortgage, easement, or other interest that affects an existing parcel is to be varied because of the amalgamation (for example, to change the area to which it applies or to apportion rights or interests under it), the variation must be made conditional on an order of confirmation being made for the amalgamation.

122 Actions required for aggregation of ownership

1 This section sets out the actions that must be completed in order to aggregate ownership of parcels.

2 An allocation scheme must be prepared that allocates the beneficial ownership of the parcels in accordance withsection 123.

3 The aggregation, including the allocation scheme, must be agreed to in respect of each parcel as follows:

(a) for Māori freehold land managed under a governance agreement, by the governance body:

(b) for other Māori freehold land, by owners who together hold 75% or more of the participating owners’ total share in the parcel:

4 The aggregation must be conditional on the court making an order of confirmation that—

(a) the aggregation, including the allocation scheme, complies with the requirements of Parts 1 to 9; and

(b) the court is satisfied that the allocation scheme is fair and equitable to all owners.

125 Cancellation of aggregation of ownership of parcels

1 The aggregation of the beneficial ownership of 2 or more parcels of Māori freehold land may be cancelled so that each parcel becomes separately owned, but only if the actions required by this section are completed.

2 An allocation scheme must be prepared that allocates the beneficial ownership of the parcels in accordance withsection 126.

3 The cancellation, including the allocation scheme, must be agreed to in respect of each parcel by—

(a) the governance body, if the parcel is managed under a governance agreement; or

(b) owners who together hold 75% or more of the participating owners’ total share in the parcel, in any other case.

4 The cancellation must be conditional on the court making an order of confirmation that—

(a) the cancellation, including the allocation scheme, complies with the requirements of Parts 1 to 9; and

(b) the court is satisfied that the allocation scheme is fair and equitable to all owners.

128 Lease of parcel for general purposes

1 A lease may be granted over all or part of a parcel of Māori freehold land for a purpose other than residential housing, but only in accordance with this section.

2 The term of the lease must be 99 years or less.

Requirement for agreement (unless lease is renewal)

3 The lease must be agreed to in accordance with subsections (5) to (7).

4 However, agreement is not required for a lease granted under a right of renewal included in another lease.

5 If the lease is granted for a term of 52 years or less and is not a selflease, the lease must be agreed to by—

(a) the governance body, if the land is managed under a governance agreement; or

(b) owners who together hold 75% or more of the participating owners’ total share in the land, in any other case.

6 If the lease is granted for a term of more than 52 years and is not a selflease, the lease must be agreed to by—

(a) the governance body, if the land is managed under a governance agreement; or

(b) owners who together hold more than a 50% share in the land, in any other case.

7 If the lease is a selflease, the lease must be agreed to by the governance body.

Other provisions

8 If the land is not managed under a governance agreement and the lease is granted for a term of more than 52 years, the grant of the lease must be conditional on the court making an order of confirmation that the grant complies with the requirements of Parts 1 to 9.

9 The lessee’s interest under the lease may, unless the terms and conditions of the lease provide otherwise,—

(a) be assigned; or

(b) be subleased, but only in accordance with the provision in this Part that restricts a lease of the sublease’s type.

10 However, the lessee’s interest under a selflease cannot be assigned or subleased to anyone other than—

(a) the governance body that manages the land; or

(b) an entity controlled by the governance body; or

(d) any person for the purpose of residential housing.

11 In this section and sections 129 and 130,—

entity controlled by the governance body means an entity for which the governance body has—

(a) direct or indirect control of 50% or more of the votes at any meeting of the members or controlling body; or

(b) the direct or indirect right to appoint 50% or more of the trustees, directors, or managers (however described)

residential housing means—

(a) the occupation of existing premises as a place of residence; or

(b) the building of premises on, or transporting of premises onto, land and the occupation of the premises as a place of residence

selflease means a lease of land managed under a governance agreement that is granted to the governance body or an entity controlled by the governance body term includes—

(a) any further terms that may be granted under rights of renewal included in the lease; and

(b) for a lease granted under a right of renewal, the terms of any leases from which the right of renewal derives.

210 Requirements for land management plan

1 This section applies if—

(a) a governance agreement requires a governance body to have in place a land management plan; or

(b) a governance body wishes to dispose of a parcel of Māori freehold land by way of sale or exchange (in which case section 207 also applies); or

(c) a governance body wishes to partition or amalgamate a parcel of Māori freehold land (in which case section 208 also applies).

2 The governance body must have in place a land management plan that complies with subsection (3) and that is approved by owners who together hold 75% or more of the participating owners’ total share in the Māori freehold land managed under the agreement.

3 A land management plan must—

(a) identify the Māori freehold land that is managed under the governance agreement; and

(b) set out any proposed changes that affect the Māori freehold land that is managed under the governanceagreement (including proposed acquisitions, dispositions, improvements, or other changes); and

(c) explain how the proposed changes will enhance the governance body’s ability to achieve the objects of the body as stated in the governance agreement; and

(d) set out the financial implications of the proposed changes; and

(e) set out how the governance body will achieve the proposed changes; and

(f) set out the risks of adopting, as well as the risks of not adopting, the land management plan; and

(g) in respect of a proposed disposition of a parcel of Māori freehold land, set out—

(i) why the disposition is necessary for the governance body to effectively manage the asset base in accordance with the governance agreement; and

(ii) how the governance body will manage the process of acquiring or improving replacement land (within the meaning of section 104(3)(a)) with the proceeds from the disposition.

235 Māori incorporations may adjust shareholding

1 A Māori incorporation may amend the total number of shares in the incorporation to a specified number, and correspondingly amend the number of shares held by each shareholder so as to represent the same proportion of the total shares as was represented by that person’s shareholding before the amendment.

2 If a Māori incorporation makes an amendment referred to in subsection (1), it must—

(a) notify the chief executive within 5 days after the amendment is made; and

(b) if the incorporation keeps its own share register under section 233, update the register to reflect the amendment.

288 Change to name of parcel

1 The court may, on application, make an order changing the name that constitutes the legal description of all or part of a parcel of Māori freehold land.

2 The application may be made by—

(a) the governance body, if the land is managed under a governance agreement; or

(b) 1 or more owners of the land, in any other case.

3 The Registrar must, as soon as practicable after the application is made, give notice to the RegistrarGeneral and the SurveyorGeneral.

4 The notice must—

(a) provide details of the application; and

(b) invite submissions on the application from the recipients of the notice; and

5 The court must consider any submissions received by the deadline specified in the notice.

6 The court must not make an order under this section unless it is satisfied that—

(a) the application,—

(i) for land managed under a governance agreement, is made by the governance body in accordance with the requirements of Parts 1 to 9; or

(ii) for other land, is agreed to by more than 50% of the participating owners of the land (casting votes of equal weight); and

(b) the new name complies with standards set under section 49 of the Cadastral Survey Act 2002 for parcel appellations.

7 If the court makes an order under this section, the Registrar must—

(a) provide the SurveyorGeneral with the information required to integrate the name change into the cadastre; and

(b) pay the prescribed fee (if any) for the integration.

99 Sale of parcel

1 A parcel of Māori freehold land may be sold, but only in accordance with—

(a) section 100; or

(b) section 103 (where a governance body has no reasonable prospect of obtaining the required level of owner agreement); or

(d) a right to buy the land in a lease executed before 8 November 1974 (being the date of commencement of Part 7 of the Maori Affairs Amendment Act 1974).

2 However, a parcel cannot be sold—

(a) if it is owned by a class of collective owners; or

(b) if it is owned by the trustees of a whānau trust or other trust (other than a governance body); or

3 To avoid doubt, a parcel of Māori freehold land (or the part of Māori freehold land comprising the buildings and other fixtures attached to the land, and everything growing on the land) does not change status merely because it is sold, including under a power in a mortgage.

100 Sale of parcel in ordinary cases

1 This section specifies the only way in which a parcel of Māori freehold land may ordinarily be sold (without obtaining an order under section 103 or relying on a mortgagee’s power of sale or a right to buy in certain historical leases).

2 The sale must be—

(a) to a preferred recipient in relation to the land, under an agreement negotiated with the recipient; or

(b) to a preferred recipient or preferred entity in relation to the land, under an agreement formed on acceptance of a qualifying tender under a preferential tender process for the land run in accordance with section 101; or

(i) made by tender or auction after a preferential tender process for the land ends without a qualifying tender; and

(ii) on terms at least as favourable to the seller as the terms required for a qualifying tender under that preferential tender process.

3 If the land is managed under a governance agreement,—

(a) the decision to offer the land for sale must be agreed to by the governance body, but only after the body complies with section 104; and

(b) the governance body must negotiate the terms of the sale or, for a preferential tender process, set a minimum sale price and all other terms of the sale.

4 If the land is not managed under a governance agreement,—

(a) the decision to offer the land for sale must be agreed to by owners who together hold a 75% or more share in the land; and

(b) the owners’ decision may set a minimum sale price or any other terms of the sale; and

(c) the following must negotiate all other terms of the sale or, for a preferential tender process, set all other terms of the sale (including a minimum sale price if not set by the owners’ decision):

(i) a kaiwhakahaere appointed to negotiate or set the terms; or

(ii) 1 or more of the owners, if all of the owners agree in writing to their negotiating or setting the terms.

5 The sale must—

(a) be conditional on the court making an order of confirmation that it complies with the requirements of Parts 1 to 9; and

(b) otherwise be agreed to unconditionally within 9 months after the decision is made to offer the land for sale.

6 To avoid doubt, if a decision is made to offer land for sale and a preferential tender process ends without a qualifying tender, the land may be sold to any other person under subsection (2)(c) within the 9month period referred to insubsection (5)(b) without requiring a new decision to offer the land for sale.

174 Owners of Māori freehold land may revoke governance body’s appointment for that land

1 The owners of a parcel of Māori freehold land that is managed under a governance agreement may revoke the governance body’s appointment in respect of that land.

2 A decision to revoke an appointment requires the agreement of the owners who together hold 75% or more of the participating owners’ total share in the land.

3 If the revocation relates to all of the Māori freehold land managed under the agreement, the revocation starts the process of cancelling the governance agreement (see section 175).

4 If the revocation relates to only some of the parcels of Māori freehold land managed under the agreement, the governance body must prepare a partial distribution scheme (see sections 225 to 227).

175 Ways to start cancellation of governance agreement

1 Any of the following events starts the process of cancelling a governance agreement:

(a) the owners of all of the Māori freehold land managed under the agreement decide, in accordance with section 174, to revoke the body’s appointment in respect of the land (whether or not another governance body is to be appointed for the land):

(b) the governance body decides to cancel the agreement:

(c) the governance body decides to amalgamate with 1 or more other governance bodies to form a rangatōpū (if this is permitted by section 161):

(d) the court makes an order under subsection (2):

(e) the governance body that is a party to the agreement,—

(i) in the case of an existing statutory body, is disestablished by or under an Act; or

(ii) in the case of a representative entity, is wound up:

(f) in the case of a rangatōpū that is a body corporate whose status as a body corporate derives from registration under another enactment, rather than under section 166, the body ceases to be registered as a body corporate under that other enactment.

2 The court may make an order to start the process of cancelling a governance agreement if the court is satisfied, in respect of the governance body that is party to the agreement, that—

(a) the body is insolvent; or

(b) the body has failed to comply with a statutory duty or obligation; or

(c) the continuing appointment of the body will materially prejudice the owners of the Māori freehold land managed under the agreement.

3 At the same time as making an order under subsection (2), the court may appoint a kaiwhakahaere under section 189to oversee the governance body’s preparation and implementation of a full distribution scheme under section 221.

4 The Registrar must send a copy of any order made under subsection (2) to the governance body and the chief executive.

Schedule 4

11 Requirements for amending governance agreement

1 The governance agreement may specify a process for making amendments to the agreement, and may specify different processes for particular amendments or classes of amendment.

2 A process specified in a governance agreement must require, or be read as if it requires, an amendment—

(a) to be signed by or on behalf of the governance body; and

(b) to be incorporated into an updated version of the governance agreement and registered with the chief executive as soon as practicable after the amendment is finalised.

3 If a governance agreement does not specify a process for making amendments, the agreement must be read as if it—

(a) requires the governance body to make a substantive amendment by—

(i) using the decision-making process set out in Schedule 2 to reach a decision about the amendment; and

(ii) obtaining the agreement of the owners who together hold 75% or more of the participating owners’ total share in the land; and

(b) enables the governance body to make any other amendment without the agreement of owners; and

(d) requires the amendment to be incorporated into an updated version of the governance agreement and registered with the chief executive as soon as practicable after the amendment is finalised.

4 An amendment is substantive to the extent that it changes any of the following:

(a) the objects of the agreement:

(b) the rights or entitlements of any of the owners of the Māori freehold land managed by the governance body:

(d) a process for amending the governance agreement.

Schedule 3

6 Approve governance agreement

1 The incoming owners must approve a governance agreement that complies with Schedule 4.

2 If the proposed governance body is a rangatōpū that is already a trust established under an existing trust deed, the incoming owners must ensure that the terms of the trust are set out in a trust deed that complies with Schedule 4.

3 A decision of the owners of a parcel of Māori freehold land to approve a governance agreement that applies to the parcel requires the agreement of the owners who together hold more than 50% of the participating owners’ total share in that land.

7 Register governance agreement

The proposed governance body must apply to the chief executive in accordance with Part 4 of this schedule to register the governance agreement.

51 Decisions by specified majority of owners of Māori freehold land

(1) This subpart applies to a decision relating to a parcel of Māori freehold land if Parts 1 to 9 or a governance agreement requires that the decision be agreed to—

(a) by owners who together hold a specified majority share in the land (for example, more than a 50% share); or

(b) by owners who together hold a specified majority of the participating owners’ total share in the land (for example, more than 50% of that total share); or

Decision-making process

(2) If the parcel is managed under a governance agreement, the decision must be made using the decision-making process required by the agreement.

(3) If the parcel is not managed under a governance agreement,—

(a) where the whole parcel is owned by 1 person or by joint tenants and paragraph (b) does not apply, the decision may be made by whatever process the owners choose; and

(b) where the whole parcel is owned by the trustees of a whānau trust or other trust or by an incorporated body, and the terms of the trust or the constitutional documents of the body include a decision-making process, the decision must be made using that process; and

Participation thresholds

(4) The participation thresholds that must be satisfied for participating owners of a parcel of land to validly agree to a decision under Parts 1 to 9 or a governance agreement—

(a) are the thresholds specified in subsections (6) and (7); and

(b) are subject to the exception specified in subsection (8).

(5) However, if the parcel is managed under a governance agreement that provides for other participation thresholds or exceptions, those other thresholds or exceptions apply instead.

(6) If a decision is about a parcel owned by tenants in common, and—

(a) there are 10 or fewer owners, all of the owners must participate:

(b) there are more than 10 but not more than 100 owners, there must be participation by at least 10 owners whose individual freehold interests total a 25% or more share in the parcel:

(c) there are more than 100 but not more than 500 owners, there must be participation by at least 20 owners whose individual freehold interests total a 25% or more share in the parcel:

(d) there are more than 500 owners, there must be participation by at least 50 owners whose individual freehold interests total a 10% or more share in the parcel.

(7) If a decision is about a parcel owned by a class of collective owners,—

(a) at least 20 owners must participate; but

(b) all the owners must participate if the class is known to have fewer than 20 members.

(8) However, if the participation threshold for a decision is not satisfied,—

(a) a second decision-making process for the decision may be commenced within 20 working days after the day on which the level of owner participation in the first decision-making process was calculated (which may be the day on which voting on the proposal closes or the day on which owners consider the proposal, if the proposal does not proceed to a vote because the required quorum of owners is not present); and

(b) there is no participation threshold for the second decision-making process, as long as—

(i) the applicable decision-making process is followed as if the decision were a new decision; and

(ii) the second decision-making process is notified to owners in a way that clearly explains that the resulting decision will be valid if it is agreed to by the required majority of the participating owners, irrespective of how many owners participate in making the decision; and

(c) if the applicable decision-making process includes a separate quorum requirement, a failure to satisfy the quorum requirement does not invalidate the decision.

Specified majority requirements

(9) A requirement for agreement by owners of a parcel of Māori freehold land (whether all of the owners or only the participating owners) is satisfied as follows:

(a) where the whole parcel is owned by 1 person, by that person making the decision; and

(b) where the whole parcel is owned by joint tenants, by all of the joint tenants agreeing to the decision; and

(i) by satisfying the requirements of whichever of sections 54 to 56 applies; or

(ii) if sections 54 to 56 do not apply because the requirement specifies a percentage majority other than 50% or 75%, by satisfying the requirements of whichever of sections 54 to 56 applies as if their references to 50% were references to that other percentage.