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 […]
COVID-19 – Insolvency Relief for Business
7 April 2020 The global COVID-19 pandemic has caused global disruption to life, liberty, and commerce. Along with tragic death and illness, COVID-19 is straining and shutting down borders. businesses, supply chains puts the livelihoods of people at risk. Closer to home, the NZ Government has taken the unprecedented step of banning the non-essential movement […]
Is Inflation coming back?
Inflation, for many New Zealanders, is either a distant memory, if they are old enough to remember it at all. It has been forty years since we have had to grapple with the curse of significant price uncertainty. Are these days about to end? Scarcity as a source of inflation Throughout our economy […]
Is Big Government Back?
Since 1984 New Zealand has embarked on what has been labelled a ‘neoliberal’ course. We have been moving away from the Roger Douglas and Ruth Richardson agenda under recent governments of both National and Labour, but many of the core reforms have remained intact. Are we going forward to the past? Think Big! In reaction […]
