The Brightline test for residential property is to be extended from 2 to 5 years from later this month. The current 2 year period was criticised from inception as potentially too short and relatively easy to work around. With the extension, the ability to work the system, by sitting out the 2 year period will have gone.
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...
The requirements for New Zealand resident directors of all companies incorporated here have now come into force. so have the strengthened identification requirements that require directors to disclose their date and place of birth.
Share sale agreements invariably provide for an agreed price that presupposes a fixed working capital balance at settlement. That balance is often agreed to be zero which will require the purchaser itself to ensure funding of working capital is available immediately after settlement.
These are a commonly used vehicle for managing the respective interests and expectations of vendor and purchaser. Conceptually they are straight forward; practically they are anything but.