Frequently Asked Questions


Q What is the meaning of the “buy-line”  “a share in a fleet of boats, not just one boat”?
A Normally, private shared boats arrangements are made between friends and are normally limited to one boat. The aim of this scheme is for each person to have a share in a fleet of boats.
Q Why have a share in a fleet of boats, rather than one boat?
A Multiple boats in the scheme will improve the availability and provide some use averaging amongst the Participants.
Q How long will the scheme run for?
A The scheme has been designed to run in perpetuity. That is, it can run for ever.
Q Why has it been designed to run in perpetuity?
A The scheme has no defined end, which enables people to be Participants for as long as they wish. They can also sell their share at any time to a willing buyer.
Q What is the minimum time I can participate in the scheme?
A There is no minimum, but for practical reasons, preferably one year. The reason for this is that it makes it easier to determine your share value at the time of sale.
Q Why do you have to own a share in the boats?
A To comply with Maritime NZ rules for recreational boating, each person who uses a boat must have an ownership in the boat that they use.
Q Why does the scheme have to comply with Maritime NZ recreational boating regulations?
A To operate the scheme at the OBC (Outboard Boating Club of Auckland), the boats must fit into the Maritime NZ recreational boats classification and can only be used for recreational purposes. On July 2013 the scheme moved the Tristram to Orams Marine, Westhaven. The Buccaneer 685 was also moved to Orams Marine.
Q Why is the scheme set up on a “not-for-profit” basis?
A There are two mains reasons for this:
1 To provide an affordable recreational boating opportunity, where all benefits are enjoyed by the Participants.
2 When initially set up to run a scheme at OBC, it is an OBC requirement that it is “not-for-profit”.
3 Whilst the boats are now located at Orams Marine, the scheme stills runs on a not-for-profit basis.
Q What size of boats will be in the scheme?
A The scheme is being launched with two boat sizes. (please refer to boats on the home page) other size boats can be added in the future.
Q Are different size boats available for any Participant?
A No, only the boat size scheme that you join. Because the scheme has been structured with a capital + annual service charge, it is difficult to set up a single scheme with multiple boat sizes and cost at this stage. There will therefore be a Limited Partnership for each boat size. The availability of multiple boats sizes within a partnership will be considered in the future.
Q How many boats will there be per boat size?
A This will be determined by the number of people wanting to join each boat scheme. The limited Partnerships will be set up so that boats and Participants can be added in the future.
Q Who runs the scheme?
A In the immediate future, it is planned that the scheme will be run by the Participants.
Q How big will the scheme get?
A This will be determined by the demand and the Limited Partners. It could also be constrained by the availability of boat storage.

Cost Structure

Q Why do you pay a one-off capital payment + an annual service charge?
A We have taken a long term approach to the design of the scheme. It has been developed as a true “pay-as-you-go” scheme.
Q What does the capital payment for?
A It is for the purchase of a share of the ownership of a fleet of boats.
Q What does the annual service charge cover?
A This charge covers all the ownership and operating costs including boat depreciation & the inflation on the cost of boat replacement in the future.
Q Why is depreciation included as a cost?
A The scheme has been set up on an in perpetuity basis. That means that it can run for ever. Depreciation is one of the costs included so that a boat replacement fund will accumulate, for future boat replacement.
Q Why is there an inflation provision for boat replacement?
A At the time of boat replacement, new boats will cost more. The inflation provision has been included to cover this increase in cost of new replacement boats
Q Will more capital have to be paid to replace the boats?
A The scheme has been designed to cover all the costs of boat replacement. The general Partner will manage the funds to ensure that the boat replacement fund will cover the cost of boat replacement
Q How is the share value determined at the time of sale?
A The General Partner, who manages the scheme will provide advice on the current value of shares.
Q How will the annual service charge be determined in the future?
A This will be adjusted to include any changes of operating costs and predicted boat replacement costs in the future.
Q Who will decide if the annual charges need to be adjusted?
A This will be the responsibility of the General Partner.

Points System

Q Why have a points system?
A A points system controls the use of the boats and provides every Participant with an allocation of use. A points systems also enables weighting to be put on the various times for boat usage so that off-peak usage is encouraged.
Q Will the points system ever be adjusted.
A Yes, if necessary. The operation of the points system will be monitored to insure that it provides a good balance between use and reasonable availability.
Q Why does the points system have both half and whole days?
A Half day time slots will provide more boating opportunities, particularly in peak times such as weekend. Half day time slots will also provide more affordable boating opportunities.
Q Why are the points less Monday to Friday?
A To encourage use of the boats during the week where possible so that the availability of the boats for the weekends is maximised for the weekend only users. Weekends and public holidays have a premium on them as they are in higher demand. Participants can plan their trips with a mixture of “off peak” and “peak“ times to maximise their time on the water.
Q Why are 2 forward bookings allowed in a future 60 day period?
A To provide a reasonable opportunity for all Participants to make forward bookings for planned outings and ensure that all Participants get a fair opportunity to use the boat.
Q Why can you make one short term booking 7 days in advance?
A To provide an additional booking opportunity where booking slots are available. This is to maximise participant’s time on the water but still ensuring all participants have a fair and equal opportunity to use the boat.

Scheme Structure

Q What is the legal structure of the scheme?
A It is a “Limited Partnership” under Limited Partnership Act 2008.
Q Why have a legal structure?
A It provides the framework for the efficient administration of the scheme for the benefit of the participants.
Q Why has a Limited Partnership structure been chosen?
A This is the only structure that can provide the administrative framework and at the same time result in the Limited Partners each having a share in the pleasure boats purchased by the Partners.
Q Who is a Limited Partner?
A Any person who is a member of OBC and agrees to become bound by the partnership agreement and has their name entered on to the register of limited Partners, held by the registrar, will become a Limited Partner.
Q Who is the General Partner?
A The General Partner will be a Company, the shares of which will be held in trust for the Partners in the Limited Partnership and the Directors of the General Partner will be appointed from persons who are Limited Partners or, who are initially involved in the Boat Share Scheme setup Committee.
Q Why Limited Partners?
A Limited Partners have limited liability. The maximum liability that any Limited Partner will have is their contribution to the capital of the Partnership, providing the Limited Partner does not take part in the management of the partnership.
Q Why have a General Partner?
A The General Partner is the manager of the Limited Partnership and has unlimited liability. Providing the directors of the general Partner comply with the law, they will not be held personally liable for any of the partnership debts.