Hive down: The wrong way, and the right way
Hiving down is a corporate rescue technique which originated in England in the 1950s, the rules for which have been established in New Zealand by several pieces of case law* The term originates from the practice of creating a new honeybee colony, by moving some bees and honey to a new hive. For companies, it is […]
How your company’s corporate governance is relevant to its insolvency
Insolvency processes centre on the rights of the insolvent company’s creditors. Corporate governance is the system of rules, practices, and processes for a company to follow, including mechanisms that keep companies (and their directors) accountable to shareholders, creditors, and other stakeholders. For a SME, whose corporate governance may centre more on accountability to its shareholders […]
How companies sail through a storm and survive
When the economic climate is tough and businesses bear the brunt, it is not uncommon to see companies fully settling their debts, for as little as 15 cents on the dollar, while continuing to trade with a legally binding agreement. What’s more, they are often supported by their creditors, and generally everyone is happy with […]
Landmarks of company and insolvency law: Influential cases and their implications on businesses
Directors have various duties imposed on them, and company law constantly develops on application. While risk is an inherent part of business, it is important to follow the evolution of the company and insolvency law. Particularly how directors’ duties affect company’s financial and trading status. Below are some key takeaways of influential decisions, particularly useful […]
The rights of the various company stakeholders during insolvency procedures
During corporate insolvency procedures stakeholders’ roles undergo a transformative shift. This impacts shareholders, directors, and creditors, while navigating their way through this specialised legal area. Below are some considerations that might shed light on these changing roles. Shareholders In New Zealand, when a company enters an insolvency procedure, shareholders find their rights curtailed as the […]
What all corporate professionals need to know about insolvency
As reported in our recent Waterstone Newsletter, February 2024 saw a record number of liquidations, some of which got the attention of the media, like Selah Homes. Insolvency is increasingly relevant in the corporate context as not just the insolvent companies themselves, but also those who deal with them, are at risk. Most directors will be familiar […]
The five rules of Statutory Demand
A statutory demand is a formal written request served by a creditor to a debtor company, demanding payment of a debt owed. It is the start of the process that can lead to the liquidation to a company. A statutory demand notice is a legal demand for payment prepared under section 289 of the Companies […]
Section 299 of the Companies Act 1993, and the court’s role in setting transactions aside.
When a company is placed into liquidation, the liquidator of the company has several avenues of recovery available for the benefit of the company’s creditors. A liquidator can apply to the court to have transactions set aside due to being voidable. One method is through the mechanism of section 299 of the Companies Act 1993 […]
Are there circumstances when the time limit does not apply?
Section 11 of the Limitation Act 2010 – are there circumstances when the time limit does not apply? Section 11 of the Limitation Act 2010 (the Act) provides a defense against money claims when a claim is filed 6 years or later after the date of the act or omission on which the claim is […]
Case law update: Application to remove court-appointed administrator
Application to remove court-appointed administrator of body corporate by trustees of trust in receivership – s 248 Companies Act 1993 The trustees of Link Trust (No.1) (the Trust) filed an application to remove Mr Gambitsis (the Administrator) as administrator of Body Corporate 68792 (the Body Corporate), due to various complaints regarding the conduct of the […]
