Businesses are struggling in these uncertain times and insolvency is a reality many CAs’ clients are facing.
CA ANZ business reform leader Karen McWilliams FCA and John Fisk FCA, partner at PwC New Zealand and chair of the Restructuring, Insolvency and Turnaround Association of NZ, join host Aly Garrett FCA to discuss the early warning signs – and how the key to survival is closely aligned to what the All Blacks do to stay world champions.
As well, Acuity podcast hack guru Andrew Van Der Beek shares transformational tech tool tips and CA ANZ President Peter Rupp speaks with John Schol CA, chief executive at Invercargill’s Malloch McClean, about his radical transformation from painter’s apprentice to accountant.
This article is reposted here courtesy of MinterEllisonRuddWatts.
The Supreme Court last Thursday released its long awaited decision on directors duties engaged on a company’s insolvency – Debut Homes Limited (in liquidation) v Cooper  NZSC 100. The decision has profound implications for directors confronted with a business experiencing material financial distress and more broadly, for creditors, lenders and the insolvency profession.
This is the first time these issues have come before our highest court, and its decision is significant. In a in which directors have grappled with existential challenges to their businesses, and with the decision of the Court of Appeal pending in Mainzeal, the Supreme Court has raised the stakes for directors operating financially distressed companies. Increased recourse to formal insolvency and restructuring processes seems inevitable.
The psychological fallout and stress caused to owners and management of distressed businesses, should not be underestimated.Every entrepreneur, business owner or employer, fully intended to have a different future from what they are experiencing right now. Due to the COVID Crisis they have had to cope with trading restrictions imposed on them, loss of business, the necessity to retrench or temporarily lay-off staff, renegotiate leases, sometimes defaulting on debts. From ambitions, hopes and dreams, their thoughts are now about survival. They have tumbled down the spiral of future thinking to merely trying to stay in business or mitigate the loss.Charlotte Kemp is a business owner who has lost two businesses and experienced the trauma of devastated dreams and debt review. She is also a futurist, working with robust academic tools as well as her own models, to help people define, navigate and course correct, towards their preferred futures. Having experienced business failure, she has empathy with those experiencing these challenges and wants to demonstrate real models to address them.
In a one hour workshop Charlotte Kemp will deal with:
Innovative ways to deal with these challenges;
A model to understand what we are experiencing now;
Incentives to aspire to move up the spiral to define and aim for a better future; and
Unpack a set of approaches to find inspiration and explore real world examples of businesses that have redefined themselves and survived in spite of the odds stacked against them.
Attendees will also have a further 15 minutes to speak with Charlotte after the session.
“INSOL International is pleased to present a Special Report titled “Arbitration and insolvency disputes: A question of arbitrability” by the Hon Paul Heath QC, Bankside Chambers (Auckland and Singapore) and South Square, London and Dr Anna Kirk, Bankside Chambers (Auckland and Singapore).
Until recently it was commonly accepted that insolvency disputes fell outside the scope of arbitration. However, recent authorities suggest a more liberal approach to arbitration, albeit one where the boundary between those disputes that are or are not arbitrable, is somewhat blurred. A number of authorities suggest the line is determined by reference to whether a dispute involves “core” or “pure” insolvency issues, although the question may be asked what exactly the terms “core” or “pure” mean in this context? The purpose of this report is to consider these issues in order to distinguish those insolvency related disputes that are arbitrable from those that are not.
INSOL International sincerely thanks the Hon Paul Heath QC and Dr Anna Kirk for this thought-provoking and interesting Special Report on arbitration and insolvency.”
As a consequence of the pandemic, most of us will have experienced a combination of good and bad. Less travel time more connectiveness with colleagues but equally significant business disruption and the threat of imminent economic impact, not to mention the terrible human cost of the disease itself. Getting used to this new normal has demanded we all make adjustments. The restructuring profession is no different, quickly adapting to meeting clients needs under the new circumstances. As your global association our responsibility to members is to provide content, thought leadership and good opportunities to network and connect, as a result we too have had to turn our attention to new ways to provide these services. Interestingly, much like the whole experience our next event reflects the positives and negatives of Covid-19. On the one hand we will not be able to meet in person this year however, by presenting a virtual conference we have been able to secure an even wider range of exceptional speakers than would have been possible when working with the constraints of a single location.
From a delegate’s point of view, this is going to be a different experience, but one that is absolutely worth taking advantage of at this point in the business cycle. Why? Precisely because global economies insulated from the real impact of the pandemic by schemes to subsidise employee salaries and other mitigation measures are now going to start to show the signs of the real cost in terms of insolvencies and other negative financial outcomes. Before this wave breaks, there is a real need for practitioners and restructuring professionals to pause, understand, and prepare themselves for the significant challenges to come. We need to come together as an industry to share insights, understand the latest thinking and agree principles and best practice.
Now is the moment to capitalise on the lull before the storm and invest some time in being ready.