Mayne Wetherell has produced a guide to doing business in New Zealand to provide overseas investors, and their advisers, with information about investing here.
The guide summarises inbound investment, immigration, investment structures, financial services regulation, tax, securities, takeovers, intellectual property, employment, land law, and trade practices.
Useful links to market events and commentary.
Increasing risk and responsibilities for directors deter applicants
The annual Institute of Directors' (IoD) and ASB's 2019 Director Sentiment Survey found 40 percent of directors were more likely to be deterred from taking a governance role than they were a year ago, compared with a third in 2018. IoD Governance Leadership Centre general manager Felicity Caird said this was a result of an increasing trend of laws and regulations extending director responsibility and liability.
Big rule changes for banks expected on December 5
It has been a year since the Reserve Bank of New Zealand, proposed commercial banks hold more of their own money against the loans they make, that they might better withstand a monumental financial shock. Over the last 12 months the consultation process has been controversial. The Reserve Bank solicited the views of the banking industry and other business users of financial services as well as the wider public, and contentiously, governor Adrian Orr used both public and personal channels to push the case for stronger rules and argue that the cost to the economy would be "minimal".
Mainzeal’s Richard Yan loses bid to halt bankruptcy proceedings
A High Court judge has rejected Richard Yan's attempt to fend off bankruptcy proceedings brought by the liquidators of Mainzeal. Exercising his discretion, associate judge Bell rejected Yan's suggestion that the proceeding should be held off while he also appeals Justice Cooke's ruling. The appeal is set down for a week next April but a decision may take months due to its complexity. Associate judge Bell noted that if Yan is adjudicated bankrupt, "there is a real risk that his appeal may be abandoned because as bankrupt he would lose standing to appeal."
Company director shortage warning as fears of personal liability risk rises
Companies could struggle to get new directors in the future because more are being put off the job by higher risks in the operating environment and personal liability if something goes wrong warns Felicity Caird, the governance leadership manager at the Institute of Directors. Caird's warning comes after an annual sentiment survey of its members found 40 per cent of directors are more likely to be deterred from taking a governance role than a year ago - up from 33 per cent in 2018.
Takeovers Panel provides limited partnerships guidance
The Takeovers Panel has released an article, Limited Partnerships and Control of Code Company Voting Rights, which gives its general views about who controls the voting rights in a Code company that are held by a limited partnership. It notes that limited partnerships are are increasingly common in New Zealand, including as investment vehicles that acquire or otherwise hold or control shares in Code companies.