We are all part of a hierarchy, connected by the relationship from sensei to deshi (students). In Japanese budō, the prime relationships are sensei's sensei, sensei and deshi. Without all 3, the interconnected nature of correct transmission breaks down. Where the sensei is old enough (and assumedly a sufficiently high grade) then sensei's sensei may be physically absent, eventhough their influence lives on. Indeed, we are all part of an unbroken chain sometimes stretching back hundreds of years, so while sensei's sensei's sensei, etc may be long gone, they are still there in the chain of legitimacy. In Japan it is virtually unheard of to be part of a legitimate budō lineage that is not directly part of this type of chain from sensei to deshi. Being a member of the appropriate renmei is not a substitute for this connection, and a dōjō that has no direct connections to their sensei's sensei needs to be considered carefully I think.
In our dojō we have two streams of sensei to deshi relationships, one for ZNKR Seitei Iaidō and one for Mugairyu Iaihyodo as Dan's koryu sensei no longer involves himself in Seitei, preferring to focus all his energy on koryu iaidō.
Dan has trained with his sensei in Wakayama-ken, Japan for over 23 years, and is uchi-deshi (the highest deshi) of sensei's dōjo. Before leaving Japan, Dan was taught the forms and meanings for all the kata practiced by sensei's branch of Mugairyu, and was given authority to set up the New Zealand dōjo and pass on what he learns from sensei as a related but independent dōjo.
Our branch of Mugairyu does not have gradings, but sensei's permission and recognition as the sensei of the New Zealand Mugairyu dōjo form the same level of authority. Important texts and other items have also been passed on to Dan as a mark of this recognition and legitimacy.
With Dan's Mugairyu sensei's permission and encouragement, he has also been accepted at another dōjo to train and grade in ZNKR Seitei iaidō. In terms of Seitei, Dan and his deshi are treated as members of this sensei's dōjo and are registered there for gradings, doing gradings only in Japan. This sensei is 7-dan and has strong connections with the 8-dan sensei in his region and we are welcomed and accepted by the renmei there. We also receive regular updates and instruction from sensei throughout the year to consolidate when we visit him in Japan
Dan is currently 4-dan in ZNKR seitei iaidō and is recognised and accepted by sensei as the head instructor for Seitei iaidō at our dōjo.