Further measures to support businesses
No 3rd April 2020 the Government will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and keep New Zealanders in jobs.
The temporary changed include:
- Giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency duties under the Companies Act,
- enabling businesses affected by COVID-19 to place existing debts into hibernation until they are able to start trading normally again,
- allowing the use of electronic signatures where necessary due to COVID-19 restrictions,
- giving the Registrar of Companies the power to temporarily extend deadlines imposed on companies, incorporated societies, charitable trusts and other entities under legislation, and
- giving temporary relief for entities that are unable to comply with requirements in their constitutions or rules because of COVID-19.
“These measures will support the Government’s work to cushion the economic impact for New Zealand and to support businesses and protect jobs and incomes,”.