An introduction to shareholders' agreement - why are they important?

An introduction to shareholders' agreement - why are they important?

A shareholders' agreement (“Agreement”) records the arrangements between the shareholders and directors of a company regarding the ownership, government and management of the company. Companies are not required to implement an Agreement by law. However, implementing an Agreement is recommended as it is designed to address areas regarding governance and control of business activities, whether external or internal, which a company constitution or the Companies Act 1993 may not specifically address.

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Inheritance - is it separate property?

Inheritance - is it separate property?

Separate property is all property of a spouse/partner that is not required to be equally shared under the Property (Relationships) Act 1976 (“Act”) when a relationship comes to an end. Generally, inheritance is separate property. However, if separate property is intermingled with relationship property (property that must be divided between spouses/partners when the relationship ends) and it is impracticable to treat it as separate property, it is no longer separate property. An example is where inheritance money is used to pay the mortgage on a family home.

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Residential Care Subsidies and Asset Planning

Residential Care Subsidies and Asset Planning

The Residential Care Subsidy (“Subsidy”) is becoming increasingly topical as New Zealand’s 65+ population is projected to increase from 15% in 2016 to over 25% by 2068. The growth in this population will increase the number of Subsidy applications for financial assistance for long-term residential care in a rest home or hospital (“Care”). Despite the predicted growth in applications, many New Zealanders are not aware that their current asset planning has the potential to affect the outcome of a Subsidy application significantly. In light of this, advice surrounding asset planning in consideration of a Subsidy application is essential.

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Negotiating an Agreement for Sale and Purchase of Real Estate

Negotiating an Agreement for Sale and Purchase of Real Estate

The negotiation process of buying or selling a property is vitally important. As a vendor, you are negotiating the terms of the sale of what is most likely your most valuable asset. As a purchaser, you are committing yourself to the purchase of a substantial asset and it is critical that you have appropriate conditions to complete a proper due diligence investigation. If you are buying at auction then this due diligence has to be carried out ahead of time.

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Issues to look out for when buying an apartment

Issues to look out for when buying an apartment

John and Vicky had always dreamed of retiring to a trendy city fringe apartment with sea views, close to cafes and shops. They had found the perfect apartment and fallen in love with the amazing views from the balcony and the immaculate gleaming kitchen. John and Vicky had heard that there were some possible “fishhooks” with buying an apartment, so they signed the agreement with a due diligence condition, they ordered a builder’s inspection, and they asked for copies of the minutes from the AGMs from the last 5 years.

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Relationship property agreements

Relationship property agreements

Jenny had been married for 10 years and had three young children when her marriage came to an abrupt end. Jenny and her ex-husband agreed that she would receive the family home - which was now mortgage free - so that she and the children could remain living there. Jenny’s ex-husband retained all the money in their savings account and also took the boat and the holiday home.

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