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 […]
Serving documents overseas – Is a bankruptcy notice an originating document?
Rules 6.27 and 6.28 of the High Court Rules 2016 (the HCR) set out the process for when you want to commence to serve proceedings on a defendant or respondent overseas. Rule 6.27 sets out the scenarios where you do not require leave of the court to serve proceedings on a defendant overseas. However, it’s […]
To the great white north and back, to Waterstone
A decade can be a pivotal span in one’s life, filled with experiences, growth, and change. For me, it involved a journey that took me across the Atlantic to Canada. After spending ten years in the Great White North, I find myself back in the place I once called home: Christchurch, New Zealand. In 2011, […]
Case law update: Court found liquidator’s appointment invalid, then reappoints same liquidator.
Liquidators and a major shareholder of Podular Housing Systems Limited applied to the court for orders to confirm the validity of the appointment of the liquidators. The company has two shareholders, the second application was a 95% majority shareholder, and the respondent is a 5% minority shareholder. The respondent is also the sole director of […]
Waterstone win in the Court of Appeal – Grant v Montgomerie [2022] NZCA 483
Waterstone has recently been involved in some precedent setting litigation in the Court of Appeal. The appeal court has ruled that current and former directors are obligated to provide books and records to the appointed receivers. The company Bassett 43 was a company undertaking a potential hotel development project in Auckland CBD on Hobson Street. […]
