The company is being liquidated – are you personally liable?

Starting off on the wrong foot?   When forming a company as a director or shareholder, you usually set up accounts with suppliers to acquire goods. To do this, you will typically be asked to provide a personal guarantee (PG) — an unsecured written promise guaranteeing repayment on goods in the event the business does ... read more.

What are the advantages of liquidation?

  What are the advantages of liquidation?   This is a question we get asked a lot. “What are the advantages of liquidating?” It is usually followed up with something like: “Wouldn’t it be better to just allow the Company Registrar to strike the company off when no annual return is filed?”   As every ... read more.

Insolvency statistics – March to May (2011 – 2016)

  There were 180 appointments in May 2016. 170 liquidations, 3 administrations and 7 receiverships were recorded. The volume of liquidations is down on those seen in May 2012, 2013 & 2014, but close to those seen last year. Total insolvency appointments stand at 938 for the year to date which is down on 2015, ... read more.

The new Health & Safety Act: impacts for businesses in administration

  Health and Safety Act 2015   The new Health and Safety Act came into effect on 4 April 2016 with the purpose of reducing the number of New Zealanders killed or hurt at work.   On average 73 people die on the job each year in New Zealand and one in ten is harmed. ... read more.

A little knowledge is a dangerous thing

  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.

Negotiating change: how to plan the right business exit strategy

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.

Insolvency statistics – February to April (2011 – 2016)

  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.

Business vitals: where to look to avoid default

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.

What do you do if you receive a statutory demand?

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.

Construction contract retentions: the upcoming changes

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.