On Friday, 3 April 2020, the Minister of Finance announced that “the Government will be introducing legislation to make changes to the Companies Act to help businesses facing insolvency due to COVID-19 to remain viable, with the aim of keeping New Zealanders in jobs.”  See https://www.beehive.govt.nz/release/further-measures-support-businesses

The temporary changes include:

• giving company directors 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 the businesses are able to start trading normally again

• 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.

No timeframe was given for the introduction of the legislation.  The details will be finalised in the coming weeks.  However, the Minister indicated that the legislation would be backdated to 3 April 2020.

The Registrar of Companies’ website contains further details of the proposed legislation.  See https://www.companiesoffice.govt.nz/news-and-notices/insolvency-relief-for-businesses-impacted-by-covid-19/