Common reporting standards for Trusts

Are you are a trustee, beneficiary or settlor of a trust or have an investment portfolio managed for you or are involved in a company that is handling money for clients? If so you are likely to receive, if you have not already, some self-certification forms to complete and sign.  These forms require you to state details of the countries in which you pay tax and your tax number for each of those countries. This is a result of the New Zealand […]

How new Anti Money Laundering (AML) legislation affects our clients

New  Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the AML/CFT law” for short). The purpose of the law reflects New Zealand’s commitment to the international initiative to counter the impact that criminal activity has on people and economies within the global community. Why we need to ask you for information Recent changes to the AML/CFT Act mean that from 1 July 2018 lawyers must comply with its requirements. Lawyers must do a […]

Due Diligence Clauses – Why you need one before buying a commercial property or business

When purchasing a commercial property or business the purchaser faces the risk of undisclosed or unknown issues that can potentially be both costly and time consuming for the new business or property owner to resolve. Including a due diligence clause in the purchase agreement is the prudent way to manage that risk by enabling the purchaser to undertake an investigation into the property or business before committing unconditionally to the purchase. A due diligence clause can be drafted broadly to […]

Commercial Law – Understanding Shareholders Agreements

A company’s Constitution and Shareholders Agreement are critical elements in commercial law. They communicate and document the company purpose, shareholder remuneration and other critical agreements. What is a company Constitution? A company’s Constitution governs the way in which a company is run and can provide for different classes of shareholding and participation in the company business. The Companies Act 1993 has default provisions that apply when no Constitution has been registered when the company is formed.  This is commonly used for small […]

Why you need a Due Diligence clause when buying commercial property

The recent earthquakes in Christchurch and Kaikoura have been a good wake up call for buying and selling commercial property. As Hawke’s Bay is also a region with seismic activity, our commercial lawyers strongly advise you include a due diligence clause into a sales and purchase agreement for commercial property because earthquakes aren’t the only potential risk. What’s the advantage of a due diligence clause? If you make your sale and purchase agreement subject to due diligence you are able […]

Business Exit Strategies – an important part of planning and growing businesses

When starting up and running a business, planning how to exit that business may not be at the forefront of your mind. However, having a business exit strategy is an essential part of a well thought out business plan.  The exit process can take time so it is good to have a business exit strategy in place early on and this may also help with the direction of the company. It is important for owners to know when and how […]

Exit Strategies for Small Business

After many years of developing a business, the proprietors will inevitably arrive  at a stage when they wish to plan an exit strategy which will maximise the value of their business to them for their retirement. There are about 325,000  small to medium sized enterprises in New Zealand. The average age of business  owners in New Zealand is 58 years old. 40% of those owners plan to sell their business within the next 5 years. Maximising the value of your business […]