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,”. 

For more information or questions on how this affects your business contact the office email: paihia@pkfboi.nz or phone: 09) 4027 926