RITANZ, together with leaders in the industry has worked closely with MBIE to provide proposals to address certain corporate governance risks that now exist as a result of the Covid-19 pandemic and the Level 4 lockdown.
We have lobbied for urgent steps to be taken to both provide directors with some comfort that they will not be held liable for actions they take in this period as well as providing mechanisms to assist directors in the period following the lockdown as they attempt to rebuild their businesses.
Following the recommendations in the Insolvency Working Group’s (IWG) second paper in 2017, the government this week released details of further insolvency law reform being proposed for gift vouchers, voidable transactions, preferential employee claims and other changes to existing rules.
Additional discussion on new legislation dealing with ponzi schemes has been deferred for the time being.
The government has accepted many of the recommendations made by the IWG; the professional body for insolvency practitioners, RITANZ, believes most of these are both sensible and prudent. Our view on the key aspects of the changes are:
Article copied with permission from Kensington Swan.
The Primary Production Select Committee has reported back to the house on the Farm Debt Mediation Bill (No 2). The select committee has unanimously recommended that the Bill be passed by the House with some amendments to the original bill. The Bill will require secured lenders, as a prerequisite to taking any enforcement action, to offer mediation to a farmer and participate in the process in good faith. Farmers who are in financial trouble will also be able to initiate mediation regardless of whether a default has occurred.
RITANZ recently met with the Treasurer to discuss Phase 2 of the Reserve Bank Act, in particular whether NZ should introduce Depositor Preference or a Depositor Insurance Scheme, or a combination on both into the Reserve Bank Act. They are calling for public submissions and RITANZ is currently preparing a written submission in this regard.
Please feel free to send us your comments and feedback so that we can incorporate your views into our report.
The full Phase 2 Consultation Document is available here to read.
RITANZ’s Chairperson John Fisk and Vice Chair Matt Kersey recently presented an oral submission to the Select Committee in Parliament on the Supplementary Order Paper to the Insolvency Practitioners Bill.
RITANZ has prepared and submitted our submission on the Supplementary Order Paper to the Insolvency Practitioners Bill which strongly supports the IPB and the co-regulatory regime for insolvency practitioners . On the 20th Sep 2018, we will appear before the Select Committee to provide an oral submission.
MBIE has advised of an upcoming change to the maximum employee preferential claim figure in the Companies Act 1993 and Insolvency Act 2006.
On 30 September 2018, The figure is being adjusted from $22,160 to $23,960. This adjustment occurs every 3 years, to account for any increase in average weekly earnings (total, private sector).This adjustment reflects an 8.1 percent increase in average weekly earnings since 2015, as reported by Statistics New Zealand in its Quarterly Employment Survey.
The amendments to the Companies Act and Insolvency Act have been signed into law (see the New Zealand Legislation website) and notified in the Government Gazette. For more information, please see the MBIE website.
On the 28th June, the Minister of Commerce and Consumer Affairs. Kris Faafoi sent the Insolvency Practitioners Bill back to the select committee to consider a supplementary order paper which replaces the proposed negative licencing regime with a co-regulatory licensing framework.
The select committee is calling for submissions on the SOP with a deadline of 24th Aug 2018.
RITANZ is compiling a submission representing feedback from the industry viewpoint and we encourage members to let us have their thoughts and comments on this very important topic as a matter of urgency.
The SOP is available for further reading as per the link below:
The Farm Debt Mediation Bill would amend the Receiverships Act 1993 by introducing a mandatory mediation process and deferring the appointment of receivers for a minimum of 10 days to allow this process to take place.
This Bill was proposed, drawn up and introduced into parliament over a very short period of time and will need rigorous review and some adjustment before it can be passed into law. It is imperative that our industry has a voice and that RITANZ responds with our members thoughts and concerns on this before submissions close on 3rd Aug 2018.