The great catch-up: Clearing out the ‘Zombie’ companies
The legacy of pandemic-era economics is finally catching up with the New Zealand commercial landscape. For anyone looking closely at the health of the business sector, the true story isn’t found in short-term market sentiment, but in the structural reality of the New Zealand Companies Register. Between 2019 and 2021, commercial gravity was essentially suspended. […]
The absence of a notice of assignment does not necessarily invalidate the assignment itself
It is now common practice for debt collection companies to purchase debts from parties who may lack the resources or capacity to pursue recovery themselves. In such circumstances, a notice of assignment becomes relevant. Subpart 5 of the Property Law Act 2007 (the 2007 PLA) governs the assignment of choses in action. Under section 48 […]
Solvency is a moving picture, not a snapshot
A company can look solvent on paper and still be insolvent in practice. The point is often missed. Directors, shareholders and advisers look first to the balance sheet. The company owns a plant. It has debtors. It has work in progress. It has a pipeline. But in New Zealand insolvency law, the immediate question is […]
Creditors’ rights in voluntary administrations
Creditors’ rights in voluntary administrations Creditors play a crucial role in voluntary administration. In contrast to the more restrictive provisions for liquidations, both unsecured and secured creditors are invited to participate in this process.[1] This article outlines some of the main rights of creditors in relation to voluntary administration as set out in the Companies […]
When and what employees of a liquidated company get paid?
As economic pressures continue to impact businesses across New Zealand, employees should be aware of their rights and entitlements in the event that their employer is placed into liquidation. What happens when a company goes into liquidation? When a company is placed into liquidation, it generally means the Company is unable to pay its debts […]
Budget 2026: Shareholder loans, a Kiwi love story
They go by various names: ‘overdrawn shareholder current account’, ‘shareholder loan’, but it’s the same thing, you borrowed some money from your own company, and now the government wants you to pay it back, or pay the taxes. For many, the first word of the crackdown came with Nicola Willis’ Budget on 28 May. But […]
Liquidation Trends: Australia vs New Zealand
Despite the significant difference in economic scale, the data indicates that businesses in Australia and New Zealand have responded in a notably similar manner to the challenges of the post-pandemic period.
Personal liabilities of Liquidators, Receivers and Administrators
Insolvency practitioners, like professionals in accounting, law, and finance, must carefully manage their own personal liability when accepting formal appointments. In New Zealand, there are three main forms of insolvency appointments such as liquidation, receivership, and voluntary administration. Each of them carries different levels of personal exposure for the appointed practitioner. Importantly, insolvency practitioners are […]
What is a running account’s relevance to voidable transactions?
One of the common defences raised to a claim made by a liquidator that a transaction is voidable is that the transaction forms part of a continuing business relationship, also known as a running account. The running account defence is provided for in section 292(4B) of the Companies Act 1993: (4B) Where then The Court […]
Crown fines in liquidation still unresolved in 2026
Company liquidations remain elevated in 2026, with the IRD continuing a firm enforcement approach. Practitioners regularly encounter files with provable tax debts alongside penal liabilities such as court-imposed fines and reparation orders, which sit outside the normal insolvency distribution framework. When these penal elements surface, a structural tension is exposed that Parliament has long recognised […]
