The Companies Act 1993 This act allows a liquidator to recover payments made by an insolvent company to creditors in the lead up to a liquidation as a voidable transaction. The rationale for this is that all creditors should be treated equally, and the payments are likely to have given the recipient a ... read more.
It is astonishing how many directors and shareholders do not have an exit strategy. The company becomes their life and they fail to consider what will happen when they eventually want to retire or if they unfortunately become sick. An exit strategy is a vital requirement for any investor and should be considered ... read more.
There were 183 appointments in April 2016. 170 liquidations, 2 administrations and 11 receiverships were recorded. The volume of liquidations is in line with those seen in April 2012, 2013 & 2014 but down on last year. Total insolvency appointments stand at 758 for the year to date which is down on 2015 ... read more.
The vast majority of companies in New Zealand are small or medium sized businesses. The people behind these businesses usually have a strong desire to earn enough profit to enable significant returns for the organisation’s shareholders. However, the reality is that very few businesses achieve the level of returns shareholders desire — many businesses ... read more.
Receiving a statutory demand is a serious matter. Legally it means if you (the debtor company) do not dispute the demand within 10 working days, or pay the demand within 15 working days, you are presumed to be insolvent and the creditor can apply to the court to place your company into liquidation. ... read more.
It is long-established practice in New Zealand and around the world for retentions to be held under construction contracts to ensure that – if there are defective works – the head contractor or principal is able to recover the cost of fixing those defects. But after the Mainzeal collapse – in which the former ... read more.
How does voluntary administration work? Introduced into New Zealand company law on November 10, 2007, the process of ‘voluntary administration’ is a business rehabilitation scheme intended to be a short-term measure that freezes the company’s financial position while an appointed administrator and the company’s creditors determine the organisation’s future. The focus of the ... read more.
2016 1st Quarter Appointment Figures There were 231 appointments in March 2016. 215 liquidations and 16 receiverships were recorded. The volume of liquidations is marginally down from last year while the number of receivership appointments was slightly up. Total insolvency appointments stand at 678 for the year to date. Applications made to the ... read more.
The objective of an expert witness Deciding if an expert is needed – and if so, what kind – must be addressed before beginning a search for an expert witness. When the facts and issues of the case are not easily comprehensible – when they fall outside the common experience of judges and ... read more.
The Official Cash Rate (OCR) continues to drop as the Reserve Bank of New Zealand (RBNZ) announced it fell 25 basis points to 2.25 percent on March 10, 2016. The OCR – an interest rate set by the RBNZ – principally determines the wholesale price of borrowed money. This directly affects the way commercial ... read more.
