News & Resources
New Year, New Legislation
Towards the end of 2017 the Contract and Commercial Law Act 2017 came into force. The Act consolidates a number of commercial and business related statutes such as the Sale of Goods Act, Contracts (Privity) Act and Carriage of Goods Act. It applies to all commercial contracts entered into since 1 September 2017.
Alarm Bells are ringing for Sleeping Directors
It has long been commonplace in New Zealand for owners of small businesses to have their husbands, wives or de facto partners registered as directors. Often this appointment is a mere gesture, with the spouse/partner director having little to no involvement in the business. However, these so-called “sleeping directors” can be at risk if the company encounters financial difficulties.
Risks of Small Companies Operating a Current Account
Many small companies – especially family-owned or “owner/operator” businesses – have the same directors and shareholders. In these companies, it is common practice for shareholders to have a “shareholder current account”, also referred to as “drawings”.