Membership & Bonding Criteria
Membership and Bonding Criteria were fixed by Association in General Meeting – see Constitution and Rules – Approved at Annual General Meeting held in Auckland, 6 October 2001 and amended at the AGM in September 2007 and September 2009 and September 2015. Postal Ballot January 2019.
CATEGORIES OF MEMBERSHIP
The TAANZ Constitution and Rules of the Travel Agents’ Association of New Zealand Incorporated (“TAANZ” or “the Association”) provide for three categories of membership:
To be eligible for full membership of TAANZ a person, firm or company must be engaged, in New Zealand, in the sale of travel and the facilities of travel to the public and must meet and continue to comply with the criteria for membership and the requirements for bonding. The criteria for membership shall be determined from time to time by the Association in General Meeting. The currently applicable criteria are those set out in this document.
Allied Supplier Membership (Allied Membership)
To be eligible for allied supplier membership of TAANZ a person, firm, company or organisation must be engaged in the travel industry or in activities closely allied with the industry in some capacity other than the sale of travel and the facilities of travel to the public.
The Association in General Meeting has the power to elect an individual as a life member of the Association. The criteria to be taken into account are set out in the Constitution and Rules of the Association.
A. FULL MEMBERS
1. Applicants for full membership and all existing full members must:
1.1 Meet and continue to comply with:
a) The Requirements for Bonding which are set out in Schedule I hereto ; Attachment I hereto.
b) The Requirements for Premises which are set out in Schedule II hereto.
c) The Requirements for Qualifications for Management and Staff which are set out in Schedule III hereto.
1.2 Agree to abide by the Constitution and Rules and the Code of Ethics and Practice.
1.3 Pay membership application fees, levies and annual subscriptions.
1.4 Comply with these criteria and all other regulations, by laws, and Bonding Committee Regulations which are in force from time to time.
2. Annual Membership Review
A review of the operations and performance of every full member of the Association will be carried out on a six monthly and on an annual basis. The review is designed to ensure that all existing members continue to meet and comply with the membership criteria and particularly the requirements for bonding, for premises and for qualified staff which are set out in Schedules I, II and III respectively.
Each member will be required to submit the following documents and information when requested by the Bonding Authority:
(i) Financial particulars and information which will vary depending on the turnover and other criteria relevant to the business of the individual members and which are set out in Schedule 1.
(ii) Particulars of shareholding and of directors of members which are private companies.
(iii) Evidence of renewal of any indemnity of the member’s bond given by an insurance company or a bank.
(iv) Full particulars of any changes to the premises of the member.
(v) A list of qualified staff engaged in the member’s premises throughout the year, including full details of travel experience and qualifications is required in September of each year.
If a member fails to submit to TAANZ the documents and information set out in paragraphs (i) to (v) inclusive within 3 months of the member’s annual balance date, or within three months of the date upon which the Bonding Authority has required such material to be made available to it, or such other or extended time as the Board may specify, or in the event of the Board receiving an unfavourable report on the member from the Bonding Authority, the Board may terminate that member’s membership. When it does so the Board shall notify the member that it is unable to renew or continue membership and shall state the grounds for such decision.
The decision of the Board not to renew or continue membership of any member shall take effect immediately it has been made.
The member shall have a right of appeal against such decision. The Appeal shall be to an appeal panel comprising the chairman of the TAANZ Bonding and Finance Committee, the TAANZ solicitor or his/her nominee, and an independent chartered accountant nominated for the purpose by the president of the New Zealand Society of Accountants.
Notice in writing of intention to appeal shall be given to TAANZ by the member within fourteen days of the date on which the member received notice of the Board’s decision to terminate its membership. The notice of appeal must be accompanied by a fee of $1,000.00 which may at the discretion of the Board, whether or not the appeal proceeds, be forfeited or be used to defray any costs of preparation for a hearing of the appeal. The Board shall give the member not less than fourteen days’ notice of the date, time and place for hearing such appeal. At the hearing the member concerned may be heard in support of the appeal, either in person or in writing, and the member shall be entitled to representation at the hearing. Evidence from either side may be heard by the appeal panel which may require any member, or invite any other person, to appear before it and which may appoint Counsel to advise it. The whole of the evidence shall be recorded either in writing or otherwise, and the appeal panel shall be entitled to receive evidence by the way of affidavit, deposition or declaration even though such evidence may not be admissible in a court of law. In the event of the Appeal panel upholding the appeal the Board shall reinstate the member as a member of the Association.
The Board shall publish in its TAANZ newsletter, annual report and in a newspaper circulating in the district in which the member carries on business, notice to the effect that the member ceased to be a member of TAANZ on the date specified. The member concerned shall have no right of action against the Board by reason of such publication.
The Board shall also advise IATA that the member ceased to be a member of TAANZ on the specified date.
3. Special Review
In addition to the annual membership review or other quarterly or monthly review the Bonding Authority shall have power to carry out a special review of a member at any time if the Bonding Authority considers that the member may be a risk to the Bonding Fund. Should the Board determine that membership be terminated the member shall have the same right of appeal as in the case of a decision to terminate membership following the annual review process.
4. Provisions that are to apply where there is a change in the ownership of a full member or where the business of a full member is sold to an existing TAANZ member
4. 1 Change of ownership of shares in a full member company
4. 1. 1 Where there is a change of ownership of shares of a member company of less than 30 per cent of the capital of the company, notification of such change shall be given to TAANZ immediately the same comes into effect.
4.1.2 Where there is a proposed change of ownership of shares of a member company of 30 per cent or more of the capital of the company the approval of TAANZ is required before such change of ownership is effected. Application for approval of the new shareholders must be made on the form prescribed by TAANZ containing the same requirements as in an application for new membership and shall be accompanied by the relevant fee. The fee shall be that determined from time to time by the Board pursuant to clause 11A of the Constitution.
4.1.3 A change in the Directors of a member company shall be immediately notified to TAANZ.
4.1.4 In every case where there is a change of ownership of shares of a member company all indemnities given in support of the member company’s bond will remain in force and effect until alternative indemnities are accepted by TAANZ.
4.2 The sale of the business of a full member to another full member of TAANZ. Where a full member proposes to sell or transfer its business to another full member of TAANZ the approval of TAANZ is required before settlement. Failure to obtain such approval may mean that the business is not covered by the TAANZ Bonding Scheme. The application for approval must be made in the same manner as in an application for new membership and shall be accompanied by the relevant fee. The fee shall be that determined from time to time by the Board pursuant to clause 11A of the Constitution.
5. Change of name, trading name and address
All full members must advise TAANZ immediately of any change made to the registered name of the member and/or the trading name of the member and/or the address of the member.
6. Prohibition on misleading conduct
Full members shall not directly or indirectly follow a course of conduct which could mislead members of the public or suppliers into believing that another person, firm, company or entity is part of or connected with the member and that transactions undertaken by such entity could be perceived as being transactions of the member and thereby attract the protections associated with TAANZ membership.
7. Branch travel office locations for full members
7.1 Any full member may elect to have a branch travel office location. These locations must be approved by TAANZ and meet all the criteria as to premises and qualified staff set out in Schedules II and III hereof. A reduced fee structure may apply. All branch travel office locations must be wholly owned by their head office and trading under the same name and readily identifiable with their head office in all publications, letterhead, signwriting and brochures.
Any member proposing to open a branch travel office location or to acquire another business for the purpose of establishing it as a branch travel office location of the member, shall before commencing business in such branch travel office location apply for and obtain the consent of TAANZ. The applicant will supply the following information:
(a) Full details of the location of the proposed office and its layout.
(b) Full details of the staff who it is proposed will operate the branch, including details of the experience and qualifications of the staff.
7.2 Full members who advertise themselves or otherwise hold themselves out to the public as having an office, employee or agent based at a location or in a district which is different from the member’s approved location, which (or who) is capable of servicing the general or specific travel needs of the public at such location, or in that other district, must establish a branch travel office at the location or in that district.
8. Approved Travel Brokers engaged by full members
8.1 Full members who wish to employ or engage a TAANZ Approved Travel Broker as an independent contractor must comply with the conditions laid down in the Constitution and Rules, the Bonding Committee Regulations and these Membership and Bonding Criteria concerning the appointment, management and conduct of TAANZ Approved Travel Brokers.
8.2 Full Members who employ or engage a TAANZ Approved Travel Broker (“The Broker”) as an independent contractor accept liability to account for all financial and ticketing obligations for travel sold by or otherwise implementing transactions on the member’s behalf.
Any moneys or payments received or handled by the Broker are deemed to be money or payments made directly to the member. The member will honour and perform the contractual obligations entered into through the actions of the Broker where the customer has made payment to or through the Broker notwithstanding the fact that the Broker has failed to pass on or pay into the member’s bank account the money or payment documentation the Broker has received from the customer.
9. Application and membership procedure for new full members
All applications for membership must be accompanied by the following material in accordance with the standard membership procedure.
a) Application form, duly completed in every respect and signed, including the following undertaking.
“Application is hereby made for full membership of the Travel Agents’ Association of New Zealand Incorporated. In doing so the applicant acknowledges that he/she/it is fully conversant with the Constitution and Rules, Code of Ethics and Practice, and agreements as set out in the TAANZ Directory and Information Guide, which the applicant has read and agrees to abide by. The applicant understands that this application will be referred to the Board for consideration of the proposed premises and calibre of the proposed staff. It will also be referred to the TAANZ Bonding Authority for consideration of acceptance of the applicant for bonding and the applicant agrees to provide the Bonding Authority with all information he/she may require.
Membership will not be granted until satisfactory reports are received by the Board from the Bonding Authority and the applicant agrees by signing this application that it will not advertise or in any way represent itself as being a member of TAANZ until the written confirmation of membership for this application is received from TAANZ.”
(b) Photographs and plan of the premises.
(c) Application fee (non-refundable).
(d) Management and staff report specifying travel industry experience and qualifications which must meet the criteria laid down, including evidence of such qualifications.
(e) Certificate of Incorporation (where appropriate).
If at the expiry of a period of three months from the receipt of an application by TAANZ, any information required by TAANZ is still outstanding or any action on the part of the applicant has not been carried out, if no extension of time has been granted, the application shall be deemed to be abandoned and the application fee shall be forfeited to TAANZ.
10. Disqualifying circumstances
10.1 (a) Full members shall not, without the consent of the Board, have as an owner, shareholder, director, manager or employee any person who has been or is convicted of any offence of dishonesty or any other offence for which the maximum penalty is imprisonment for a term of three years or more.
(b) Full members shall, on becoming aware that an owner, shareholder, director, manager or employee has been convicted of an offence of the type referred to in paragraph 10.1(a) hereof disclose the fact to the Chief Executive Officer of TAANZ. If the TAANZ member wishes to retain the services of such person the TAANZ member must apply to the Board for consent to do so. In making the application the TAANZ member is to supply such additional and background material in relation to the offence and the person as it sees fit and any additional material requested by the Board.
(c) The Board shall have unfettered discretion as to whether it gives its consent to the continued involvement of such person in the operation and business of the TAANZ member or declines its consent.
(d) If the Board declines its consent the TAANZ member must terminate the involvement of the person convicted of the offence with the member. A failure to do so will mean that the TAANZ member in question will have ceased to comply with the criteria for membership and shall be sufficient grounds for the Board to terminate its membership pursuant to Rule 10(b) of the Constitution and Rules.
10.2 No person who has owned, operated or managed a full member which has defaulted in its duty as a travel agent in circumstances which gave rise to a successful claim/claims on the Bonding Fund shall be eligible to own shares in, operate or to manage another full member or a branch office of another full member for a period of 10 years from the date of the default which gave rise to the claim on the Bonding Fund, unless that person can establish, to the satisfaction of the Board, that the said default was not due in any way to the actions of that person.
11. Residual discretion rests with Board
Notwithstanding the fact that an applicant for membership meets all the criteria for full membership herein specified the Constitution and Rules of the Association gives the Board absolute discretion to refuse to grant full membership to any applicant.
B. ALLIED SUPPLIER MEMBERSHIP (also referred to as Allied Members)
Any travel or tourism related company and/or organisation is able to apply to become an allied supplier member of TAANZ, be they New Zealand based or overseas based. (Constitution and Rules, Rule 7). The following additional criteria will apply for overseas applicants for allied supplier membership who must complete the standard membership application form.
(a) A photocopy of any document showing that the applicant is a member of its local travel trade association.
(b) The names of any two full or allied members of TAANZ who are doing business with the applicant.
(c) Any other information which could assist the Board in considering the application.