Voluntary Administration is a less known alternative to liquidation. How does it work? The board of directors resolves to put the company into administration. Administrators take control of the company. Creditors rights to pursue the pre-administration debt freezes for a five-week period (potentially extended by the court). An initial meeting of creditors is held, where ... read more.
Posts tagged with “Insolvency”
The Government on the 3rd of April proposed some legislative changes to the Companies Act in order to support business that are struggling due to the COVID-19 lockdown. One of the more interesting changes was the proposal to allow business to place their debts into hibernation. So, what is “Business Debt Hibernation”? Exact details aren’t ... read more.
Image courtesy of Rob Brewer How will this impact businesses and consumers? Insolvency laws in New Zealand have remained largely unchanged since the 1950s; however, we’re on the brink of seeing amendments to these laws. As you know, insolvency law reform has been a topic in the news since the failure of ... read more.
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? 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.
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.
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.