Legal Publications - Duncan Cotterill

Supreme Court releases decision on breach of directors’ duties

The Supreme Court has issued a new decision, Madsen-Ries and Levin as Liquidators of Debut Homes Limited (in liquidation) v Cooper [2020] NZSC 100, reviewing the law relating to breaches of directors’ duties. The decision sets out important guidance for company directors and their advisors More »

COVID-19: Details of proposed insolvency law changes are now available

The Government has introduced the legislation to bring into force a variety of initiatives that have been announced in recent weeks, including the two insolvency law changes, the safe harbour regime and the business debt hibernation scheme. More detail is now available about how these arrangements More »

COVID-19: Summary on insolvency and distressed businesses

Dealing with creditors generally Talk to your creditors early: You need to show your creditors that their best outcome is to work with you. Make sure that you have a detailed understanding of your own business including: Your accounts through to 31 December 2019 When you expect to start trading and More »

Guide to insolvency law changes during COVID-19

The Government has announced substantial changes to the Companies Act 1993 ( Companies Act ), which are designed to support businesses struggling as a result of the impact of COVID-19 and the Level 4 Government-imposed lockdown. The aim of these changes is to preserve business and to help companies More »

Swift progress of the Farm Debt Mediation Bill

The proposed farm debt mediation scheme is a step closer to becoming law after the Farm Debt Mediation Bill (No. 2) passed its third reading in Parliament yesterday. From there the bill will be sent for Royal Assent and formally be passed into law. Structural parts of the bill, allowing for the More »

Swift progress of the Farm Debt Mediation Bill

The proposed farm debt mediation scheme is a step closer to becoming law after the Farm Debt Mediation Bill (No. 2) was approved by the Committee of the Whole House in Parliament yesterday. The bill is progressing swiftly, with the third reading expected to occur this week. From there the bill will More »

The Insolvency Practitioners Regulation Act 2019 – Mandatory Reporting Obligations

The Insolvency Practitioners Regulation Act 2019 ( Act ) was passed on 17 June 2019. Based on a recent MBIE Discussion Paper, the operative provisions of the Act will not come into force until June 2020. When fully implemented, the Act will introduce licencing requirements for all insolvency More »

Insolvency Practitioners Bill to be revived and revised

The Insolvency Practitioners Bill was first introduced to Parliament in April 2010. The original aim of the Bill was to establish a “negative licensing system” for insolvency practitioners, with the Registrar of Companies having the power to ban people from acting as a liquidator or More »

Court of Appeal decision confirms that direct payment agreements can provide protection from voidable transactions

A recent decision from the Court of Appeal, Ebert Construction Ltd v Sanson and Bridgman [2017] NZCA 239, will reassure parties to construction contracts about the validity of a type of three-way financing arrangement known as a “direct agreement” (also known as direct payment More »

Kiwisaver funds - should they be available to pay a bankrupt's debts?

The Ministry of Business, Innovation and Employment (MBIE) is seeking views on how a bankrupt’s retirement savings should be treated, and whether the funds should be made available to repay creditors. This review follows last year’s Court of Appeal decision ( Trustees Executors Ltd v More »

Judgment summary - Court of Appeal declines attempt to overturn DOCA

Cargill International v Solid Energy New Zealand Ltd and others [2016] NZHC 1817 The attempt by a creditor to overturn the deed of company arrangement entered into by creditors of Solid Energy has been unsuccessful. This is an important decision as it is one of the few decisions in this area, was More »

Supreme Court confirms test for “reasonable fees” in consumer credit contracts

Sportzone Motorcycles Ltd (in liquidation) and Motor Trade Finances Ltd v Commerce Commission [2016] NZSC 53 The Supreme Court has confirmed that fees charged in consumer credit contracts may only recover costs closely related to the activity to which the fee relates. Sportzone and MTF provided More »

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