Investment is a driving force behind economic growth, but in today’s market, securing funding has become more challenging than ever. Banks have tightened their lending criteria, making traditional loans increasingly unattainable. In response, alternative funding sources—such as angel investment and private lending—are stepping in to fill the gap. But with this shift comes a critical question: how well is this sector regulated?
Issue 49 - September 2024
The Trump/Harris showdown last week was pure theatre and no doubt is a prelude for much more debate to follow. It seems to me that Kamala Harris brings a dynamic to the election that was previously missing (youth!); some fascinating watching to come in this space.
Choosing the Right Entity for Investments
Extension of the 39% tax rate to trusts prompts the question, what is the optimal choice of entity for your investments? It also brings very much into the spotlight the benefit of the 28% rate enjoyed by PIEs and tax exemption granted to PIEs for gains on NZ shares and shares listed on the ASX.
Issue 48 - June 2024
Topical events over the last month have been plentiful; the Budget of course has headlined, and so has the state of the economy, the impact of high interest rates on it and the collapse of iconic Smith & Caughey.
Issue 46 - November 2023
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.
Issue 44 - March 2023
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…
Issue 38 - August 2021
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
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…
Protections for Owner Operated Companies
There are steps open to you as owner of a trading company to protect your investment in the company…
Capital Raising Steps
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…
Supplying a Company that is in Receivership
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…
Strategies for Companies in Insolvency
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…
December 2019 – Commercial and Tax Edition
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…
March 2019 – Commercial Edition
Last week's $36m damages award against the directors of failed Mainzeal Construction, including Dame Jenny Shipley, offers many lessons...
Overseas Investment in Residential Land
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...
Legal Issues for Service Providers
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...
Current Legal Issues for Suppliers
The computer chain PB Technologies is the latest to have fallen foul of misrepresentation claims and bait advertising...
Current Legal Issues in Finance/Investment Sector
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...
Legal Issues for Service Providers
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)...
Current Legal Issues for Suppliers
Who has liability under the CGA and what for? Liability under the CGA may be wider than you think...