Tips on cashflow management during lockdown
The Government has announced lockdown alert level 4 to prevent the widespread of COVID 19 in the community. It is very challenging for a business to shut down completely if is not an essential business, and thus it is important to know the impact it will have on the cash flow for your business and […]
Served with a Statutory Demand or a Liquidation application?
The other day I helped a fellow migrant. Hardly startling you will agree, but the context was in a Court liquidation where I was the liquidator, and the fellow migrant was the director of the company that was liquidated. Furthermore, we were from completely different cultures and backgrounds. The decided advantage that I had was […]
How to use sections 12, 14 and 34 of the Receiverships Act 1993?
Section 14 of the Receiverships Act 1993 (the Receiverships Act) gives the receiver of a company the power to request and inspect the books, records and documents (the records) of the company from its directors. This power is very similar to that, which is given to a liquidator, by section 261 of the Companies Act […]
The Path to Liquidation
One of the most frustrating tensions we see as insolvency practitioners in businesspeople is between wanting to be paid and the cost and expense of taking the claim to Court. Here I will briefly touch on the process toward Liquidation of another company. Firstly, there is a statutory minimum requirement of debt being worth at […]
Why do directors fail to take appropriate steps when their company is failing?
A general trend that I and many other Insolvency Practitioners see, is the length of time directors take, firstly to recognize that their company is failing and, secondly to take any concrete steps to remedy the situation. A lot of small businesses normally do not have an accountant retained to advise them when a business […]
Why cash flow is important to a business?
As a businessperson, you do not just need to keep an eye on the profit but also the healthy cash flow of your business. Lack of cash is one of the biggest reasons that businesses fail. Some businesses make a profit but have no cash. Cash flow is the money coming in and going out […]
Security Interests and Security Agreements
Security Agreements Generally A security interest is a legal right granted by a debtor in which collateral is pledged to secure the obligations of a loan, or other form of agreement. Examples of security agreements include: A business loan, with a general security agreement over all present and after acquired personal property taken as collateral. […]
A day in the life of a liquidator
A day in the life of a liquidator – a lot of decisions 8:30am – Arrive at the office; check any emails that have fired in overnight, review the NZ Gazette and any relevant new cases. Check progress on files with staff. 10:00am – All staff WIP meeting to discuss active files, legal actions, new […]
Will the employee get paid when the company goes into liquidation?
It is sad whenever I visit a business with the liquidator and inform the employees about the liquidation. It is even worse to see the helpless employees are left unpaid for the work they performed. Usually, when we say a company has been put into liquidation, that means the company is no longer able to […]
THE VEXED QUESTION OF FINES IN A LIQUIDATION
Whenever I receive notification of a fine incurred before the liquidation, I advise the relevant authority of the liquidation and thereafter ignore the fine. I suspect most of my colleagues in the profession adopt a similar approach. Fines and Penalties are dealt with under Section 308 Companies Act which provides that: “Nothing in this Part […]
