It feels like the end of the year has been overtaken by two fabulous world cups and an election. Some lovely weather has been a Godsend too.
Nonetheless there continues to be plenty of activity, most of it positive – not so if you are exposed to prevailing high interest rates, or having to compete in the supermarket business! As usual, what follows is a snapshot of items that have crossed my desk in the last 2 or 3 months (hence topical). I hope you find them of interest.
The recent collapse of Silicon Valley Bank, the 18th largest bank in America, has provided another dent in financial markets, the Bond Market already in freefall as interest rates continue to climb. The Bank’s collapse rather highlights the need for a government guarantee on bank deposits and perhaps that will be one positive to emerge…
Observations from my desk are that the last few months have delivered increasing focus on the housing crisis and introduction of tax changes in response to it…
Buying a business out of receivership involves vastly different features to customary business purchases. This article discusses the issues for a purchaser that are unique to a target company that is in receivership…
There are steps open to you as owner of a trading company to protect your investment in the company…
Capital raising for privately owned companies necessarily carries a tension between the amount of cash needed and the cost of obtaining it. The greater the equity in the company that is conceded, the greater the cost…
What should you do, as a supplier of goods or services where your customer is placed into receivership? How does the receivership affect a landlord which has granted a lease to a company that has gone into receivership…
The need to deal with creditors
The number one priority for companies with viable businesses that are unable to meet their debts is to deal with their creditors…
Welcome to our final newsletter for 2019. In between distractions of school prize givings, end of year work functions and vexatious litigation (timed to create maximum impact), I trust you find the articles below of interest…
Last week's $36m damages award against the directors of failed Mainzeal Construction, including Dame Jenny Shipley, offers many lessons...
From 22 October 2018, overseas persons will be unable to acquire residential land in New Zealand except with consent of the Overseas Investment Office (OIO). Consent of the OIO is already required for some acquisitions of New Zealand assets by overseas persons...
Reckless trading is the term afforded to directors' responsibility in trading while insolvent. This is a nightmare area for directors as their decisions are always viewed with the benefit of hindsight and it is often the case that hindsight will reveal insolvency and business risks which might not have been apparent at the time...
The computer chain PB Technologies is the latest to have fallen foul of misrepresentation claims and bait advertising...
Reckless trading is the term afforded to directors' responsibility in trading while insolvent. This is a nightmare area for directors as their decisions are always viewed with the benefit of hindsight and it is often the case that hindsight will reveal insolvency and business risks which might not have been apparent at the time...
I am often asked by service providers whether they may limit their liability in their commercial contracts. The answer is yes (with the exception of liability under the Consumer Guarantees Act and the Fair Trading Act)...
Who has liability under the CGA and what for? Liability under the CGA may be wider than you think...
Transferring employees is key on any business sale. How do you deal with them in the sale and purchase agreement (SPA)?
A key component of the anti-money laundering rules is monitoring of financial services providers by regulators. Inherent in this is the requirement for financial services providers to register under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
It is standard for a sale and purchase agreement (whether it be for shares or assets) to be subject to conditions. The most common of these are due diligence and shareholder (or third party) consents...
Redeemable Preference Shares…
Shareholder Loans…
Subscription Agreements…
Eligible Investors…
Acquisitions: Warranty Thresholds and Knowledge Qualifiers…