Understanding overdrawn current accounts
What is a current account? A current account records the transactions between a company and its director or shareholder. An overdrawn current account occurs when a director or shareholder withdraws more money than they have put into the company. If a company becomes insolvent, the liquidator may treat the drawings as a loan to the […]
New Zealand’s hidden business crisis is now in plain sight
The writing has been on the wall for some time now, and as an insolvency firm that has witnessed a sharp increase in all forms of insolvency post-COVID, we’re watching these numbers with particular concern. What the chart tells us The chart above tracks overdue GST and PAYE debt at each March quarter since 2018, […]
How to respond to a statutory demand
Receiving a statutory demand is a scenario that directors dread. A formal piece of paper landing on your desk, demanding payment of a debt. The statutory demand is simple in form, yet its implications are often far reaching. Understanding your options is crucial. If a company owes more than $1,000 and fails to settle or […]
Requirement of directors to ensure a company keeps accounting records – section 194 of the Companies Act 1993
Under section 194 of the Companies Act 1993, the board of a company is required to ensure that at all times, records of the company are kept that: The board must also establish and maintain a satisfactory system of control of its accounting records These records must enable for the financial position of the company […]
Court Intervention in Liquidations: Sections 284 and 286 of the Companies Act 1993
The Companies Act 1993 offers two key avenues for court oversight of liquidators.
Why companies fail: Some common examples
Companies fail for a variety of reasons, sometimes it is due to one large instance, but most often it’s an aggregate of small decisions, or inaction, that leads to insolvency.
Direct claims against insurers under Section 9 of the Law Reform Act 1936
When a party suffers loss or damage due to the actions of another, and the “wrongdoer” is indemnified by insurance, section 9 of the Law Reform Act 1936 (the LRA) may become relevant.
What is the PPSR and what can it do for you?
If your business sells goods, leases goods, or provides consignment stock it will be beneficial to familiarise yourself with the Personal Property Security Register (PPSR)
Is your company solvent? – Risks for directors and their accountants
Knowing whether your company is solvent, and what risks might present if it is not, is very important for every director to know.
Small Business Cashflow (Loan) Scheme (SBCS) enforcement: IRD moves to recover outstanding COVID support loans
As winter sets in, many New Zealand business owners face a critical financial burden: the final repayment deadline for SBCSs issued during the COVID-19 pandemic. What You Need to Know The loan scheme was introduced in May 2020 to provide financial support to small and medium-sized businesses affected by the pandemic. Over 129,000 businesses across […]
