IRD’s credit reporting of business debt is ready to scale
From where I sit in the insolvency industry, I get a front-row view of how IRD’s enforcement decisions ripple through the business community. And right now, everything I’m seeing points in one direction: Inland Revenue is about to dramatically scale up its use of credit reporting against companies with serious tax debt. The evidence, from […]
Protecting yourself when dealing with an insolvent company
An insolvent company can pose several risks to businesses and their owners. Protecting yourself when dealing with financially distressed companies is increasingly important, particularly given the rising number of liquidations in New Zealand in recent years – see Insolvency Statistics. It is important to highlight three major risks associated with dealing with a company that […]
Case Study: United States insolvencies in turbulent times
The US is New Zealand’s third-largest trade partner, accounting for 12.6% of our annual global trade. Aside from being the largest economy in the world (GDP 30.6 trillion USD, 2025), it is at the forefront of geopolitics and technological innovation. As the Global Financial Crisis has taught us, the US’s financial state can have profound […]
The risk of asset dissipation, and what can be done?
When a company goes into liquidation, it is not unusual for individuals associated with the company, often directors, to take steps to move or restructure assets to defeat creditors’ interests. This typically occurs when a director or another party is aware, or suspects, that the company or the liquidator has a potential claim against them. […]
Advantages of Liquidation
When a business is no longer able to trade due to financial challenges and the shareholders or directors want to close the business, they often just let the company lapse and be struck off the register, without understanding the clear advantages of liquidation. There are several advantages of placing a company into liquidation with probably […]
Phoenix companies: Facts over folklore
Phoenix restructures remain one of the most persistently misunderstood features of New Zealand’s insolvency framework – not least because the term itself is often used imprecisely. The common reaction is familiar: “The company owed hundreds of thousands of dollars, went into liquidation, and then the director simply started again down the road.” I recently heard […]
When can a director rely on advice?
Section 138 of the Companies Act 1993 (the Act) recognises that sometimes directors may not possess expert knowledge and need to rely on professional advice in the course of performing their functions and duties. This section is not a duty, but rather, an affirmative defence to an alleged breach of a director’s core duties under […]
I’m owed money and the director is transferring assets and paying his mates
Voidable disposition
IRD Debt: Approval is easy, but what does it cost?
A few weeks ago, I found myself staring at yet another set of company records where IRD debt had metastasised from a manageable shortfall into something terminal. The pattern is depressingly familiar: a slow month, a decision to defer PAYE “just this once,” and then, six months later, a balance that’s doubled while the directors […]
Shareholder current accounts – An insolvency practitioners perspective
Notes on Article:Released 4 December 2025IRD notes the loan will become income once it is not repayable. Shareholder current accounts A Shareholder loan account or Shareholder Current Account is a running account between a shareholder of a company and the company itself. A running account is the sum of, broadly speaking, the components of a […]
