Insolvency in New Zealand
This is a guide to insolvency as practised in New Zealand. Here we look at the options facing companies, their directors and shareholders as they face the challenges of their
Each Liquidation, Receivership, Voluntary Administration and Part XIV Compromise is different. As Insolvency Practitioners we get to deal with interesting case and unique part of the New Zealand Legal Framework daily. Below are some interesting aspects of our work, compiled in short and informative articles that seeks to explain the intricacies in plain terms.
With liquidation numbers on the increase for several years consecutively, we are left wondering where the turning point is and how bad it can get. The answer may not be positive when considering the peak numbers of 2008, 2009 and 2010.
Although 2023 (1,982 liquidations) seems high compared to the last 3 years, the reality is that when compared further back to 2001 they have been at very low level relatively.
Below are three indicators that offer some insight into liquidations relative to number of companies:
2001: This year had the highest liquidation to incorporation rate over the past 23 years. 258,865 companies were registered with 1,932 liquidations recorded for the year, or 1 liquidation per 134 registered companies.
2009: The highest annual liquidations in a single year, with 3,433. It is important to note that in the 8 years prior, the total number of registered companies more than doubled, with 526,627: 1 liquidation per 153 registered companies.
2023: The number of companies in 2023 sat at 726,359, with a recorded 1,838 liquidations: That is 1 liquidation per 395 companies.
The annual proportion of liquidations to number of companies in total has declined significantly from 1 in 134 to 1 in 395.
News, Views, and resources from the insolvency sector. Waterstone has published various books, articles, and has a periodical publication called Waterline. Find all the resources below:
Stay current with news, views and statistics in the insolvency industry
16 Piermark Dr, Rosedale,
Auckland, 0632
Level 3, Brandon House,
Featherston Street, Wellington, 6011
Level 5, Harcourts Building, 88 Division Street, Riccarton, 8041