Basidiome effused, arachnoid to submembranaceous. Subiculum loose, scanty. Basal hyphae thin- to rarely somewhat thick-walled, up to 4.5(-7) µm wide, sometimes irregularly inflated, with small, abrupt clamps. Vesicles 3.5-4.5 µm wide. Encrusted hyphae present in subiculum; the encrustation is irregular, either apical or surrounding intercalary parts of hyphae. Thin-walled cystidia with large, rodshaped crystals present in the subiculum, originating from parallel basal hyphae or directly from the wood, 15-32 x 3-5 µm. Leptocystidia cylindrical, smooth, arising from the subhymeniunn or subiculum, 40-100 x 4.5-6 µm. Basidia rarely recognisable, subclavate, c. 15-20 x 4 µm, with four sterigmata. Spores hyaline, thin-walled, smooth, broadly ellipsoid, 4-6 x 2.5-4 x 3.5-4 µm, not amyloid.

This species does not fit in any described genus. The structure of the basidiome suggests Botryobasidium Donk, but the morphology of the hyphae, vesicles and encrusted cystidia do not correspond to this genus. Grandinia Fr. has different hyphae and cystidia. In Fibulomyces Julich or Leptosporomyces Julich vesicles and encrusted cystidia are unknown. Consequently a new genus [Palifer] is described:

Holotype: on Dacrydium cupressinum Lamb., New Zealand, Taupo, Hauhungaroa Range, coll. J.M. Dingley, Mar. 1953 (PDD 12513).