Discussion document on the AML/CFT Act

In December 2021, RITANZ submitted a discussion document, to the Department of Internal Affairs, on behalf of its insolvency practitioner-specific accountant members.

The aim was to share what we perceive as shortcomings and ambiguity in the legislation which gives rise to critical issues and additional compliance for Licensed Insolvency Practitioners.

The full discussion document can be viewed here.

Govt implements temporary Covid-19 measures

A message from MBIE

The Government has decided to implement a range of temporary measures across Commerce and Consumer Affairs legislation that respond to the disruption and uncertainty caused by the re-emergence of COVID-19 in the community. These include delays to the commencement of some new regulatory obligations and flexibility to make it easier for businesses and other entities to operate safely during heightened alert levels. These changes affect forthcoming credit reforms, food country of origin disclosure requirements, and include reapplying temporary relief from 2020 in respect of corporate governance legislation and contract and commercial law.

Read more “Govt implements temporary Covid-19 measures”

New insolvency regime comes into effect

This media release is prepared by, and shared courtesy of, Chartered Accountants Australia and New Zealand.

The new co-regulatory licensing regime for insolvency practitioners comes into full effect today, requiring all practitioners to hold a licence from the sole accredited front-line regulator, the New Zealand Institute of Chartered Accountants (NZICA).

Read more “New insolvency regime comes into effect”

Action required: Incomplete liquidations as at 1 Sep 2021

MBIE has sent the following message to all liquidators:

On 1 September 2020, the Insolvency Practitioners Regulation Act 2019 (the Act) came into force and at the same time the Insolvency Practitioners Register went live. The Act requires insolvency practitioners operating in New Zealand to be licensed by an accredited body.

Read more “Action required: Incomplete liquidations as at 1 Sep 2021”

Court of Appeal confirms liability of Mainzeal directors

This article is reposted here courtesy of MinterEllisonRuddWatts.

The Court of Appeal has delivered its eagerly anticipated judgment in proceedings brought by the liquidators of Mainzeal Property and Construction Ltd against its former directors, including Richard Yan and Dame Jenny Shipley. In those proceedings, the liquidators sought compensation for breach of certain statutory duties of directors engaged on a company’s insolvency: sections 135 (reckless trading) and 136 (incurring obligations) of the Companies Act 1993.

Although differing from the High Court’s judgment in several respects, the Court of Appeal concluded “[t]he liquidators were the successful party in relation to liability, and have established that they are entitled to an award of compensation in respect of the directors’ breaches”.

The Court agreed with the High Court that the directors had traded recklessly (in breach of s 135). It disagreed with the High Court’s approach to compensation arising from their doing so, finding that no loss was attributable to this breach of duty. However, unlike the High Court, the Court of Appeal found that the directors had also caused Mainzeal to commit to obligations without reasonable grounds for thinking that it would be able to fulfil those obligations (in breach of s 136). It considered there was loss attributable to these actions and referred the case back to the High Court to determine the amount of compensation to award to reflect this.

Read the full article here: