Employees Preference in Liquidations Confirmed As a result of a November 7 decision of the Supreme Court concerning Jennings Roadfreight Limited, the right of Inland Revenue to claim funds in a company bank account at liquidation in preference to all other creditors has been denied. This effectively puts employees’ claims back at the top ... read more.
Insolvency Statistics – December 2014 Market Commentary It looks as though petrol prices are finally dropping. With the cost of crude oil over 40% less now than it was in June, it has taken a while for the cost saving to reach the pumps. US oil prices hit a 5 year low. Happy news ... read more.
Plan Your Exit! It is remarkable 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, heaven forbid, become sick. An exit strategy is a vital requirement for any investor and should ... read more.
Insolvency Statistics – November 2014 Market Commentary It’s been a bit of an “up and down” month with global stock markets fluctuating amid both the Ebola scare and further terror threats from ISIS. As far as the NZ Economy is concerned, commodity prices dropped for the eighth month in a row with dairy ... read more.
Can an Administrator sell the company assets? The simple answer is yes but only if it is in the best interest of the creditors to do so. When a company is placed into Voluntary Administration, the administrator(s) must quickly decide if the company can be traded on and if a Deed of Company Arrangement ... read more.
Problems with Minority Shareholdings For some quirk of fate we have recently been involved on both sides in a slew of claims by minority shareholders who believe they have been disadvantaged. Most have acquired a small parcel of shares as a result of their employment while many were sales representatives of the company; ... read more.
When does a secured creditor lose its rights? There are a number of circumstances whereby a creditor can lose their security. The most common error is to fail to register a financing statement on the Personal Property Securities Register (PPSR). The creditors security is then deemed “unperfected”. If another creditor registers correctly on the ... read more.
Insolvency Statistics – October 2014 Market Commentary So we have another term with a National led government which many business commentators have applauded. Let us hope that the NZ economy remains stable although it was interesting to note that the Reserve bank have been buying Kiwi dollars to stabilize the currency exchange rates. How ... read more.
So you think employees get a preference do you? It is reasonably well understood by professional advisers that when a company is placed into liquidation, employees of that company are afforded a certain level of preference for amounts owed to them when it comes time to divvy up the funds realised by a liquidator. ... read more.
Three strikes and you’re out? How many companies can fail before a directors actions are called into question and the Company Registrar seeks to ban them from being a director? Is it a three strike rule or is it more complicated than that? read more.
