BE INFORMEDA WILLIAM BUCK PUBLICATION

The Summer Edition | DECEMBER 2014issue: #10

SPECIAL: P.3

THE BEST OF BOTH WORLDS: PART SELLING

YOUR BUSINESS

FEATURE: P.6

OUR NEW BRAND PROMISE:

CHANGING LIVES

plus

2 BE INFORMED | DECEMBER 2014

FEATURED IN THIS ISSUE—

A MESSAGE FROM THE MANAGING DIRECTOR—

Welcome to the Summer 2014 edition of Be Informed.

Good accountants aren’t just trusted advisors; they create positive change in people’s lives. That’s the premise behind our new ‘Changing Lives’ brand promise. For many years, the brand promise of William Buck has been Strategic Thinking, Tailored Advice, and Integrated Solutions. Whilst we will absolutely continue to deliver this in all service offerings, we feel that these words only convey what we do – and that addressing why we want to do these things means so much more. We’re more than just advisors; we aspire to create a positive change in the lives of those around us. In recognition of this we have updated our brand promise to “Changing Lives” as a statement of what we promise each of our clients, our people and our community – it is aspirational, and unequivocal. As part of our Changing Lives initiatives we have redesigned our website and our marketing materials to reflect our brand promise. If you have not visited our website recently I encourage you to do so at www.williambuck.com. There you will find clients giving their personal insights of how we have made a difference to them. As always your feedback is important to me so if there is anything that you would like to share or bring to my attention please don't hesitate to contact me.

Until next time,

Nikolas HatzistergosManaging Director

Facebook:WilliamBuckRecruit

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Pictured above: Nikolas Hatzistergos Managing Director

03 The best of both worlds: Part selling your business

04 10 ways to trigger an ATO audit

06 Our new brand promise: Changing Lives

07 New consolidation standard to affect not-for- profits

08 Employee share schemes become more accessible to the mid-market

09 Personal Property Securities Act

10 The new privacy laws: What do you need to know?

10 New ATO penalties favour corporate trustee structure

11 Two of a kind: Nick & Margaret

BE INFORMED | DECEMBER 2014 3

Top 5 Tips for part selling your business: 01 Ask the question: What is my main

motivation for part selling?

02 Undertake a financial health check to determine whether the financial position clearly identifies where the business can grow.

03 Seek the advice of an accountant who can act as an independent expert to analyse details relating to the sale.

04 Select a partner with a demonstrated track record who can add value to the business.

05 Don’t rush the sale. Learn the process involved and allow sufficient time to determine how the business can benefit. Ensure a clear focus on the desired end result – business growth.

A MESSAGE FROM THE MANAGING DIRECTOR—

THE BEST OF BOTH WORLDS: PART SELLING YOUR BUSINESS—

Part selling involves selling shares (most often a minority interest) in your business through a trade sale or to a private equity firm. It allows the business owner to release some capital from the business while still retaining active involvement.

Where traditionally business owners have shown an aversion to selling equity in their business, today’s owners are seeing a number of significant benefits. Part selling can offer substantial advantages including the introduction of a new partner that can add equity and new thinking to help the business grow more rapidly. Bringing in a new partner can also help the owner to reduce their own risk profile and diversify their investments – freeing up capital to be invested elsewhere such as superannuation. This strategy can also offer a transition into retirement. As people are living longer they are increasingly choosing to work longer. Selling part of the business could allow the owner more leisure time while still being actively involved in the future of the business. For the purchaser, the partial purchase of a business can be very attractive. Business continuity and stability as well as increased growth potential are more likely if the business

owner remains actively involved for some time following the sale. In the case of a private sale, purchasing only a percentage of the business can provide the platform for aspiring entrepreneurs who may not otherwise be able to afford 100% of the business upfront. Indeed, we are increasingly seeing the part sale of a business as the basis of a succession plan with the business being gradually sold down to the original owner’s children or loyal employees. Before entering into a sale agreement, business owners must take an honest look at the reasons for selling. The specific objectives will determine the most suitable buyer and structure of the transaction, for example; if you’re planning to grow the business you will need to select an appropriate partner with a demonstrated track record who can add ‘real value’ to the business. The structure and documentation of a part sale is often more complex than a full trade sale. It is important to seek the right advice as early as possible. For more information on whether part selling is the right strategy for you please contact your local William Buck advisor.

Middle-market business owners are increasingly choosing to sell only part of their business. According to the latest figures from Capital IQ, the part sale of businesses with a value of less than $20 million has grown from 12 per cent to 25 per cent over the last seven years.

4 BE INFORMED | DECEMBER 2014

The Australian Taxation Office (ATO) is expected to data match over 640 million transactions to tax returns this year.

With increased ATO scrutiny, private businesses could be in danger of triggering an ATO audit, regardless of whether they have done anything wrong. And while ATO audits are a necessary part of an effective tax system, they can be expensive and disruptive for your business.

We’ve outlined the 10 most common ways in which a private business may trigger an ATO audit.

01 Have financial performance that is out of kilter with your industry

As a matter of course the ATO will statistically analyse your tax returns. If your performance is inconsistent with your industry peers, this can be an indicator of tax issues such as unreported (cash) income, transfer pricing and other issues.

02 Don’t pay the right amount of superannuation to your employees

If employees complain to the ATO that their employer has not paid them the right amount of superannuation, or not paid it on time, this is a sure fire way to get a review or audit from the ATO. Often these types of audits can begin as a review of superannuation guarantee obligations, but quickly escalate to include income tax, GST and fringe benefits tax audits if the process isn’t appropriately managed.

03 Variances between tax returns and business activity statements

Reconciling the information reported on business activity statements to the tax returns is a crucial part of tax risk management. Large variances between the information reported in a tax return compared to the activity statements for the corresponding period is likely to trigger an ATO review or audit.

04 Have a poor record of lodging returns on time

Lodging annual income tax returns by the due date is not enough. You should aim to meet all compliance obligations (including activity statements, employee related reporting, fringe benefits tax etc.) and the on-time payment of any tax liabilities. A good compliance history can be invaluable in improving the ATO’s perception of a business.

10 WAYS TO TRIGGER AN ATO AUDIT—

BE INFORMED | DECEMBER 2014 5

05 Consistently show operating losses The ATO regards three loss years out of

five as indicative of a problem. There may be genuine reasons, but the ATO is likely to want to investigate these.

06 Own motor vehicles, but don’t lodge Fringe Benefits Tax (FBT) return

The ATO receives data from the state and territory motor vehicle registries regarding individuals or businesses that have purchased vehicles (generally those with a value of $10,000 or more). The ATO then matches these purchases with information reported in tax returns, activity statements and FBT returns, with an expectation that there will be at least some private use. If a business fails to lodge an FBT return showing private usage, or doesn’t include a ‘fringe benefit employee contribution’ in the income section of the tax return, an ATO review or audit is likely to be just around the corner.

07 Get the disclosure items wrong in your tax return

Making mistakes in the disclosure items on your tax return can inadvertently cause you to be flagged for a review. There are internal checks in the returns and disclosures which are easily verifiable against publically available or other information collated by the ATO. Get these disclosures wrong and the ATO could call.

08 Show big fluctuations between years Big fluctuations in financial position or

particular line items in the tax return can trigger an inquiry from the ATO.

09 Have international transactions International transactions are a key area

of focus for the ATO. Transactions with international related parties, transactions with tax havens, and material funds transfers in and out of Australia are all examples of things that can raise a red flag at the ATO. Defensive strategies, such as transfer pricing documentation, can often be the best way to manage this risk.

10 Be in the papers A major transaction or dispute that is reported in the media will undoubtedly be seen by the ATO. Many business owners are selected for an ATO review after the sale of a high value asset (often the family home) is reported in the paper. What these triggers show is that tax compliance – in particular annual income tax returns – should be treated as far more than a routine process. Many of the issues outlined above can be easily managed with a proactive tax risk management process.

To develop a tax risk management strategy for your business, contact your local William Buck advisor.

*** Many of the issues

outlined above can be easily managed.

***

6 BE INFORMED | DECEMBER 2014

Clients and friends of the firm often tell us that William Buck is different, that we’re more than just advisors, we have a real impact on their lives.

Last year our National Board made the decision to articulate this difference. They wanted to communicate not just what William Buck does but why we do it, and the difference we make to those around us. We’re delighted to launch our new brand promise, Changing Lives. We’ve developed our new promise in recognition of our responsibility to our clients, our employees and the wider community. Everything that we do has the potential to impact on those around us. However, it’s not just the transformational changes that make a difference; sometimes the small actions over time have the biggest impact.

Support from employees, clients and the communityPrior to launching our brand promise, the firm undertook significant market research to determine its authenticity. Starting with internal market research, we wanted to understand how our employees would embrace the promise and whether they felt that we do deliver life changing results. By looking at real client case studies objectively, our employees soon realised that there were lots of examples of how we had supported, mentored and assisted people in their lives. It became very clear that acting as change agents is what we’ve always done and always will do. Often we help at the most pivotal points in our client’s lives – starting and growing businesses, managing succession from one generation to the next, preparing for retirement and even assisting with estate management after their death. These authentic experiences have led to a high level of internal pride and support for changing the way we communicate.

We were delighted to find that this pride was mirrored in our external market research undertaken with existing and potential clients. Many of our existing clients were able to cite examples of how their lives and had been changed by William Buck. Those that didn’t know William Buck became motivated to learn more about us and liked the fact that we were being different, caring, genuine and bold.

A culture of changeAs a phrase, Changing Lives is more than just a branding slogan, it's present in everything we do. It motivates our clients and partners to realise their dreams. It drives innovation and creativity, as we seek new ways to create positive change. It promotes a culture of accountability leading to accurate and efficient solutions. It also inspires our employees to work as a team and give their best. Changing Lives is not a shift in culture or philosophy but rather an articulation of what we’ve been doing for 120 years and promise to continue doing.

OUR NEW BRAND PROMISE: CHANGING LIVES—

Changing LivesWhatever your needs, William Buck has the expert resources to create the best outcome for you and your business. We’re more than advisors; we aspire to create a positive change in the lives of our clients.

To see some examples of how William Buck Changes Lives please visit our website at: www.williambuck.com

Additionally, if you’d like to share your views on our new brand promise please contact Bryony Vandepeear at: bryony.vandepeear@williambuck.com

BE INFORMED | DECEMBER 2014 7 BE INFORMED | DECEMBER 2014 7

Not-for-profit organisations such as schools, churches and charities could be at risk of breaching the legislation with the introduction of a new accounting standard.

Last year the Australian Accounting Standards Board introduced a new accounting standard (AASB 10 Consolidated Financial Statements) which changes the way businesses and not-for-profits determine control over associated entities. The new standard became mandatory for businesses in December 2013 and will now become mandatory on 31 December 2014 for not-for-profits. However, many not-for-profit organisations are unaware of the changes, the application of which could give rise to a number of unexpected issues. AASB 10 has been designed to establish the principles for the preparation of consolidated financial statements when an entity controls one or more other entities. Its aim is to ensure the end users of financial statements are provided with a more comprehensive reflection of a group’s current position. It is anticipated that a number of previously unconsolidated groups will now be expected to prepare consolidated financial statements under the new standard. However, the standard only applies mandatorily to those entities that prepare general purpose financial statements. Consequently, some entities may ‘choose’ to prepare the less onerous special purpose financial statements in order to avoid the complexities of consolidation even though the reporting entity concept is not designed to be a choice but based on the existence of users (see more below). For the users of financial statements the end result could be less transparency.

This is a significant departure from the previous standard which largely considered only ownership interest as an indicator of control. As such it is possible that previously unconsolidated entities will now require consolidation. Some may find this problematic, and while they have been encouraged to prepare early it is expected that many entities will be caught out assuming there are no changes to the consolidated group.

Consider the following examples:

Example 1: Your Local School

A school has a building fund established to ‘hold’ monies ‘received’ from the school. As an unincorporated entity there is no ownership interest by the school over the building fund. Therefore, these funds have historically been left out of the consolidated picture, however, under AASB 10 ownership interest is irrelevant.The school (via the school council) dictates how the money is to be spent and therefore the school arguably has the power to direct the relevant activities of the fund. Assuming the other elements of the control model are present, the building fund will require consolidation.

Example 2: An Incorporated Association

An Incorporated Association has been established to raise funds for an overseas charity. Due to the structure of the arrangement there is no ownership interest between the Association and the charity, however the Association has the ability to direct how the charity spends the funds raised. Therefore, under AASB 10 it is likely that the Association would control the charity and would be required to consolidate the financial position and performance of the charity. It is possible that the overseas charity may not comply with equivalents to Australian Accounting Standards or there may be deficiencies in record keeping. As a consequence obtaining the information necessary to consolidate may be difficult.

NEW CONSOLIDATION STANDARD TO AFFECT NOT-FOR-PROFITS—

“It is anticipated that a number of previously unconsolidated groups will now be expected to prepare consolidated financial statements under the new standard.”

These examples are commonplace, providing an additional financial and administrative burden on the entities involved. As a result, we have seen instances where entities are considering their options for preparing special purpose financial statements in order to avoid the additional work required to consolidated controlled entities.

General or special purpose financial statements — a choice? While not intended to be a ‘choice’ there is much debate around the framework provided for determining whether an entity prepares general or special purpose financial statements. Under the Australian Accounting Standards, entities are deemed to be either reporting entities (which must comply with all applicable Australian Accounting Standards and prepare general purpose financial statements) or non-reporting entities (which typically comply with only some of the standards and prepare the less onerous special purpose financial statements.) Whether an entity is a reporting entity is determined by its management team who must determine whether it is reasonable to expect that there are users of general purpose financial statements who depend on them to make economic decisions. If such users exist, the entity is deemed to be a reporting entity. Many commentators, however, believe that the reporting entity concept is flawed and that in many cases, entities which ought to be reporting entities have deemed themselves non-reporting entities in order to prepare the less onerous special purpose financial statements.

What you should do Many entities, particularly not-for-profits, have not yet considered the changes, much less performed a reassessment of consolidation conclusions. These entities may be caught out by the changes as the time commitment required for gathering the necessary additional information to perform the retrospective restatement may be greater than expected. If you have not yet assessed how AASB 10 will apply to your entity please contact your local William Buck advisor.

Application of AASB 10 AASB 10 changes the way in which control over an entity is assessed. The new standard considers whether an entity has power, exposure or rights to variable returns from its involvement with the investee and a link between that power and those variable returns.

8 BE INFORMED | DECEMBER 2014

Employee share schemes are expected to become more ‘business friendly’ under proposed changes recently announced by the Federal Government as part of its Innovation and Competitiveness Agenda.

The changes follow sustained lobbying within the industry, including a submission to Treasury made by William Buck, which called for a number of actions including the repeal of earlier changes made in 2009. Legislation enacted in 2009 has hindered the ability for start-ups and SMEs to use employee share schemes to attract and retain key talent. The most recent announcement proposes to revoke these controversial changes and is expected to significantly reduce the cost and administrative burden on SMEs and better support start-ups. The question remains, however, as to whether further reformation is required.

The 2009 changes – current taxation of employee share schemes Prior to 2009, employee share schemes provided an effective tool for start-ups and SME’s to compete for top talent. For those businesses that couldn’t afford the larger salaries paid by big businesses, an employee share scheme offered an opportunity to reward key employees with a stake in the business’ future. The tax rules enacted in 2009, have prevented many SME’s from offering an employee share scheme. The current rules tax the employee on the value of the shares either when they are issued (upfront taxed plans) or at a specific time in future (deferred tax plans) with the maximum deferral being seven years. This can often result in an unfunded tax liability, where tax is payable on the value of the shares, even though the shares can’t be sold and the employee hasn’t received any cash. For start-ups this can pose a significant problem, where it is not until a ‘liquidity event’ like a trade sale, IPO or commercialisation of a product occurs that the shares have a realisable value. Often, the employee is expected to pay tax on their shares before they can actually sell them (and may not have the funds to do so). This type of scenario can undermine any motivational benefits that an employee share scheme could achieve.

Proposed changes On the 14th of October 2014 the Government announced a number of key changes to the tax treatment of employee share schemes which include:

— Shares and options issued by start-ups will only be taxed at the time the shares are sold which means that employees only have to pay tax when they actually receive value

— Eligible start-up businesses will be allowed to issue shares to employees at a small discount and issue options under advantageous conditions

— Shares and options that are issued by start-ups at a discount will no longer be subject to up-front taxation, so long as they are held by the employee for at least three years

— The maximum time for tax deferral will be extended from seven years from acquisition of interests to 15 years, allowing more time for the start-up to succeed

— Employees in start-ups will have their gains on the Options and Shares taxed as a capital gain and not income (thereby accessing lower effective tax rates).

The reforms which apply from 1 July 2015 come as a relief for SMEs and start-ups and are expected to further enhance Australia’s competitiveness in the search for qualified talent.

Back to the future? While the unwinding of the 2009 changes is welcomed, it should be acknowledged that the pre-2009 rules were not perfect. There is a concern that by simply reversing the rules, the Government is failing to take the opportunity for meaningful tax reform in this area. A number of the proposed changes outlined above could continue to restrict some businesses. For example, for employees in private businesses, taxing discounted options when they are converted to shares rather than when they are issued is merely moving the issue. Shares and options in privately owned businesses are not readily convertible to cash. There is no market for shares in private companies, as opposed to public companies where the shares can be traded on the applicable exchange. The concession should defer the taxing point until the employee share is sold. This would overcome the unfunded tax liability issue, which is the primary issue impeding the implementation of employee share arrangements by private companies. While the Government’s proposed changes put Employee Share Schemes back on the table for SMEs careful consideration needs to be given to their structure to ensure that they are tax effective for both the business and the employee. For assistance in the assessment and design of an employee share scheme for your business please contact your local William Buck advisor.

EMPLOYEE SHARE SCHEMES BECOME MORE ACCESSIBLE TO THE MID-MARKET—

BE INFORMED | DECEMBER 2014 9

Introduced in January 2012, the Personal Property Securities Act (PPSA) has transformed the manner in which personal property is treated from a legal and financial perspective.

While the legislation has been in place for some time, its ramifications are not widely understood. The Act establishes a single national priority registration regime which replaces the traditional notions of title and ownership. Any personal property, ie. property other than real land and some improvements, that has been pledged as a security interest needs to be registered on the Personal Property Securities Register (PPSR) and satisfy certain criteria in order to be water tight and enforceable. The introduction of this legislation represents a fundamental change in commercial law and replaces 70 plus State and Territory Acts which were previously managed by 30 agencies.

What is affected by PPSA?It is easier to describe what is not affected. Land is not affected because the interest is registered by mortgage. Where you are not in possession of goods that you own, the PPSA needs appropriate consideration. Examples of this include:

— Supplying goods on retention of title or consignment terms

— Leasing, hiring or renting equipment to customers

— Lending goods to customers or contractors

— Storing goods on third party premises or transporting goods in equipment or systems owned by someone else

— Assigning book debts, receivables, leases or hire purchase agreements

Failure to properly register these interests on the Personal Property Securities Register (PPSR) has severe consequences for the traditional owner if there are other competing security interests where the customer or lessee becomes insolvent. Title or ownership of the goods no longer offers sufficient protection.

Retention of title clauses not sufficient protection It is important to note that a retention of title clause will not necessarily hold water when a customer becomes insolvent. The party with the highest ranking security under the PPSA will have the ability to seize both 'stand-alone' goods and commingled goods, and to also have security in the commingled goods. A retention of title supplier who has fully complied with the provisions of the PPSA can:

— Seize goods that remain in the hands of the debtor

— Remove goods supplied which have been fixed to other goods (accessions)

— Get security in manufactured product where the good supplied has been used in the manufacturing process (not previously possible).

— Get security in the product of commingled or mixed goods (new law)

— Get security in the proceeds where the goods supplied have been on-sold. This may be of limited use where the goods sold have been paid for. However where the goods sold remain an outstanding book debt security can be achieved in the book debt (new law).

What can happen?Failing to register interest on the PPSR could result in a loss of $50 million for US Energy Company APR. Early this year, mining services firm Forge Group went into receivership. Forge Group had been leasing wind turbines to the value of $50 million from APR. However, the turbines had not been registered on the PPSR by APR. Under the PPSA, all assets not registered under the act vest with the lessee – in this case, Forge. Whilst the case is not yet determined by the Court it would appear that the turbines owned by APR will be able to be sold by the receivers and the proceeds paid to Forge’s creditors, ANZ.

What do you need to do?Careful consideration should be given to your business position, particularly where you allow others to use your equipment or store goods on your behalf – you could have exposure to the PPSA. If you believe your business may be affected by the legislation then contact your local William Buck advisor for assistance. Firstly, you will need to consider your business position and exposure to the PPSA. If you believe that you are, or will be affected, then get in contact with us for assistance. The PPSA law is quite complex and securing your interest via the PPSR is the domain of the legal fraternity. Whilst William Buck will not register interests under the PPSA, we can assist with your enquiries and progress the advice with you.

PERSONAL PROPERTY SECURITIES ACT—

10 BE INFORMED | DECEMBER 2014

Australian Business could face penalties of up to $1.7 million for a privacy breach following changes to the Privacy Act. Our guest columnists Alison Baker (Partner) and Rhiannon Nixon (Lawyer) from Hall & Wilcox lawyers outline what you need to know.

Reforms to the Privacy Act 1988 (Cth) which came into force on 12 March 2014 impose more onerous obligations on most businesses when handling personal information The key changes to the Privacy Act include the introduction of:

— 13 Australian Privacy Principles (APPs);

— Greater powers given to the Australian Information Commissioner, including powers to seek penalties, for serious or repeated breaches, of up to $1.7 million against corporate entities and $340,000 against non-corporate entities; and

— A comprehensive credit reporting system, under which a broader range of credit related personal information is accessible to credit providers.

What should businesses do?While businesses should seek independent advice tailored to their specific enterprise, generally speaking, they should take the following steps to improve compliance.

— Ensure an up-to-date privacy policy is readily available, setting out the matters prescribed in the Privacy Act.

— Know what personal information they collect and ensure they are only collecting personal information that is reasonably necessary for one or more of their functions or activities.

— Implement processes through which individuals can make enquiries or complaints about the handling of their personal information, or seek access or correction to their personal information.

— Implement security measures to protect personal information from misuse, interference and loss from unauthorised access, modification and disclosure.

— Review contracts and/or implement data transfer deeds with third party suppliers, particularly those overseas. Under the reformed Privacy Act, a business can be found liable for privacy breaches committed by an overseas entity to which the business has disclosed personal information.

— Review direct marketing procedures and ensure consent processes are in place where required and that recipients of marketing communications can easily opt out of receiving further material.

— Train staff on privacy compliance.

— Appoint a Privacy Compliance Officer responsible for overseeing privacy compliance in the business.

Written by: Alison Baker, Partner | Hall & Wilcox Telephone: (03) 9603 3568 alison.baker@hallandwilcox.com.au

Rhiannon Nixon, Lawyer | Hall & Wilcox Telephone: (03) 9603 3477 rhiannon.nixon@hallandwilcox.com.au

NEW ATO PENALTIES FAVOUR CORPORATE TRUSTEE STRUCTURE—

From 1 July 2014 the Australian Tax Office (ATO) has been granted greater powers when dealing with self-managed superfund trustees who breach superannuation law.

The new penalty powers allow the ATO to level penalties on a sliding scale depending on the seriousness of the breach, with the maximum penalty being $10,200. This maximum penalty is, however, based on the fund having a corporate trustee. Where a SMSF has individual trustees, each trustee would be personally liable for the $10,200 penalty. Multiple penalties could apply to the one fund for the one contravention. Essentially, for a fund with four individual trustees, this increases the effective maximum penalty from $10,200 to $40,800. While the potential penalties are high, the do-it-yourself label associated with SMSFs can lure investors into a false sense of security. Superannuation law in Australia is continually changing, and it can be fairly easy to inadvertently breach the rules. The ATO has highlighted five key areas where trustees are making mistakes:

01 Investors providing loans to family members and friends from their SMSFs.

02 Investments being made into in-house assets which are not solely for the SMSF.

03 SMSF assets not being separated. In many instances they are being mixed with personal assets.

04 Investors taking money from the fund for living expenses prior to meeting their cash requirements.

05 Incorrect borrowing structures being established for the purchase of assets by a SMSF.

It’s important that investors understand the full responsibilities required to comply with the ATO’s superannuation laws and the associated demands as a trustee when establishing an SMSF. Appointing an experienced corporate trustee can provide assurance that all obligations are being met. Alternatively, investors should seek the advice of an independent expert before making any decisions in relation to their SMSF.

THE NEW PRIVACY LAWS: WHAT DO YOU NEED TO KNOW?—

BE INFORMED | DECEMBER 2014 11

pinned to my desk “Become friends with people who aren’t your age. Hang out with people whose first language is not the same as yours. This is how you grow.” William Buck and specifically Nick have given me the chance to do this.

Keeping me grounded

NH: When I pass people in the office I’m often preoccupied, I’m thinking about the next meeting or client issue and I don’t always say hello or acknowledge them. People have pointed this out, sometimes they think I’m just rude. But Margaret is the one who consistently picks me up on this. If I walk past without acknowledging her I get a quick (and pointed) “Good Morning Nick” – you just can’t miss her. It keeps me grounded and I find myself back tracking to have a chat with everyone.

MB: How did I get to know Nick? I just talked to him as I’d talk to anyone else. I think some of the staff are missing an opportunity and that’s not fair on them or Nick. They might be nervous because of his position, but he’s just a nice man, plain and simple.

Moussaka in the boardroom

MB: For my 65th birthday Nick cooked a boardroom lunch for the admin team, It was very unexpected. I left the menu to Nick, whatever he was willing to cook I was happy to eat!

NH: Cooking for Margaret was just a small gesture. I could have bought her a present but the one thing I’ve always valued is when people give me their time. My cooking’s probably not as good as Margaret’s but I gave it my best shot.

Honey and going to war

NH: We’ve been through a number changes, including mergers, an office move and a new electronic document management system. Over the years, I’ve seen a lot of people contribute; but I tell you what if I ever had to go to war I’d want Margaret to have my back. She’s dedicated, adaptive and I’ve never known her to flinch at doing whatever was necessary to get the job done. I just can’t believe someone in their sixties (who certainly doesn’t need to work) puts in so much effort.

MB: I know I can count on Nick, if I need something I just need to ask. I’d do anything in return. When I went to Greece a few years ago, Nick asked me to bring back a kilo of his favourite honey. I carried that honey everywhere with me, I didn’t put it down once!

The future

NH: When Margaret filled out her last performance review I handed it back to her and told her to get serious; I wanted a 5 year plan. She’s simply not allowed to retire, at least not until I do.

MB: I’ve told you, if you want me to stay you’ll just need to keep the firm growing to keep me challenged.

TWO OF A KIND: NICK AND MARGARET—

Our new segment ‘Two of a Kind’ looks at some of the most interesting relationships across William Buck; between directors, clients, employees and the wider community.

When Margaret Broadhurst first started at William Buck over ten years ago little did she imagine that she’d be counting National Chairman Nick Hatzistergos among her closest friends and advocates.

A wet Friday afternoon

Margaret Broadhurst (MB): I had my interview on a wet Friday afternoon. I’d been retired for about 8 or 9 months and had intended to retire full time – but then I get bored. My husband, Ron, drove me to the city and on the way I kept thinking “Do I really want to go back to work? Am I too old for this?” Ron drove around the block while he was waiting, and the blocks got bigger and bigger; I was having a great old chat, and by the end of it I thought, “yeah I can handle this.”

Nick Hatzistergos (NH): I remember that afternoon, our General Manager, Lynda told me she’d found us a new records manager, she had the necessary skills, the right experience and a great attitude, there was just one concern; at 55 she was bit older than our previous records manager. But our attitude has always been to hire the best person for the job, so we made her an offer.

Lunch at the spanish club

MB: The first time I met Nick was just before our Christmas lunch. It was at the Spanish Club, and I really didn’t want to go. I was very involved in what I was doing and didn’t take much notice of this chap that was standing beside my desk – I said “Can’t I get out of this lunch?” Little did I know that he was our Managing Director! I was so embarrassed I avoided him for weeks. Then over time I thought “this is silly” he’s just a person, I should talk to him, and that was the start of our friendship.

NH: I noticed the impact Margaret had on the firm before I even got to know her. Within a matter of weeks she was making a real difference; directors were commenting on how easy it was to find what they needed. We were hoping she had a sister we could employ!

Becoming friends with people who aren’t your age

NH: Margaret was reluctant to get involved in William Buck’s social life; she thought that was for the ‘young ones’ so I asked my PA to recruit her for our social club committee. I knew Margaret would get a lot out of it, plus I wanted someone on the committee who I rely on. Contributing to the firms’ social club is important to the directors and its important that the funds are used to the benefit of everyone.

MB: You recruited me for the committee? Well that’s a surprise to me! It was probably for the best, the people and the work keep me young. I’ve actually thanked Nick for not letting me retire. I see other people my age who aren’t active, they complain a lot and they have very little to talk about. I don’t want to be like that, my brain isn’t wired that way, working here my brain simply has to keep going. I have a new mantra which I keep

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2 —OF A KIND

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William Buck is proudly dedicated to giving back to the community. Over the past quarter we have participated in a range of activities from giving blood to sleeping at the ‘G’. We look forward to continuing to share our support for the community with you in upcoming newsletters.

For the second year in row, William Buck has participated in the Sleep at the ‘G’ in support of Melbourne City Mission. This year, an enthusiastic team of 20 braved the cold and slept overnight at the Melbourne Cricket Ground (MCG) to raise vital funds which help end youth homelessness. We proudly ranked as the fifth highest fundraising team, raising a total of $12,000. We’re delighted to have provided Cunnamulla Health Centre with their first ever retinal camera and other urgent medical equipment. Diabetes retinopathy is one of the leading causes of blindness in Aboriginal and Torres Strait Islander communities. Yet, simple screening for diabetes retinopathy can prevent this blindness. The provision of high quality eye services is a fundamental part of improving the health of Aboriginal and Torres Strait Islander peoples. Across Australia our people have been rolling up their sleeves to give blood to support the Australian Red Cross Blood Service. This year alone, we’ve provided 35 donations saving a total of 105 lives. For many people, blood donors are their lifeline. Currently only 1 in 30 people give blood; however 1 in three will need blood in their lifetime. We look forward to donating every three months and building momentum for this essential cause.

The annual William Buck Golf Day held at the Glenelg Golf club was a great success, raising $6,000 for the Roger Rasheed Sports Foundation. Roger Rasheed Sports Foundation assists disadvantaged communities by providing access to diverse sports, facilities and equipment. In November we hosted our annual Chefs’ Challenge event in Sydney. The evening raises funds to support a Healthy Eating program for the children at Green Square Public School; a program enabled by South’s Cares. This year William Buck donated $13,000 to the program, and a silent auction on the night with prizes generously donated by DéLonghi brought our total up to $16,000. November also saw a few of William Buck’s men sporting some rather unusual facial hair for men’s health charity Movember. Our mo’ bros raised over $6,000 to support research and awareness of prostate cancer, testicular cancer and mental health. Chris Brown, William Buck Director, has developed a range of inspirational workshops for both clients and staff in WA covering essential skills required for success in today’s professional and personal environments. Some of the topics covered include – Having a Purpose; Improving Self; Living 100% and Better Quality of Life. With Christmas fast approaching, staff in our Adelaide office have been generously donating toys and other personal items to Backpacks 4 SA Kids charity, which helps children in emergency foster care and domestic violence shelters. We look forward to sharing with you the life changing results of these activities.

CONTACT—

WILLIAM BUCK GIVES BACK—

williambuck.com

Sydney Office Level 29, 66 Goulburn Street Sydney NSW 2000

Telephone: +61 2 8263 4000

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Telephone: +61 8 6436 2888

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Telephone: +61 8 8409 4333

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PO Box 106 090 Auckland 1143, New Zealand

Telephone: +64 9 366 5000

info@wbcg.co.nz

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