Family trusts are a practical structure for holding assets, particularly in New Zealand where there are approximately 300,000 to 500,000 trusts operating today. Currently, the Trustee Act 1956 and the Perpetuities Act 1964 contain provisions which need to be read in conjunction with case law regarding their operation, and do not keep up with present-day trust practices. Therefore, the updates regarding trust law under the current Trusts Bill (“Bill”) are long overdue, being the first significant reform for at least 60 years. The Bill will replace these Acts, clarify core trust concepts and create more practical trust legislation.

Easter Sunday is not a public holiday, yet most businesses used to have to be closed on this particular day. However, changes to the Shop Trading Hours Act 1990 (the “Act”) that came into effect in August 2016 mean that all territorial authorities (city and district councils) now have the power to have a local Easter Sunday shop trading policy to permit shops to open on Easter Sunday in areas comprising the whole or part(s) of an authority's district. At least 25 of the 67 local councils in the country have already passed bylaws allowing shops to open on Easter Sunday.

Alternative Dispute Resolution (“ADR”) methods are alternatives to going directly to court. Using ADR methods instead of pursuing the matter in court is usually more cost effective for all the parties involved, takes less time to resolve the dispute, and also relieves the court of cases they believe can be resolved between the parties without court assistance.  This particular article will focus on mediation in the context of employment law and form a part of our ADR article series which will include articles on formal/informal negotiation and arbitration over the next two newsletters.

When asking Kiwis what their entitlements are when it comes to annual leave, holidays and resignation, the responses are generally vague. Government statistics show that over 50% of working Kiwis have held their current employment position for less than 18 months, therefore, it is imperative for them to be familiar with employment law and employee rights.

The New Zealand Government estimates the proceeds of fraud and illegal drugs totalling about $1.35 billion each year is laundered through New Zealand businesses.

In order to comply with its international obligations and to improve New Zealand’s ability to identify and prevent money laundering and terrorism financing, the Government has implemented changes to the law which affect various businesses and professions.

A Guarantor is a person who gives a promise to repay the debt of a borrower.  By agreeing to pay a debt the Guarantor has made a guarantee to the institution or person lending the funds (“lender”). Frequently when someone gives a guarantee they are also giving an indemnity. An indemnity is a contractual promise to accept liability for any loss by the lender that is accumulated in the process of the recovery of a debt. 

Competition law promotes or seeks to maintain competition in marketplaces. It does this by restricting anti-competitive trade practices, mergers and business acquisitions, and economic regulation.

In 2016, the New Zealand (“NZ”) Police investigated 118,910 incidents of family violence, that equates to approximately one DV incident every five minutes. The most recent parliamentary debate on the issue has resulted in The Domestic Violence – Victims’ Protection Bill (“Bill”), originally proposed by the Green Party, which had its first reading in March 2017. This Bill aims to offer greater protection to victims of DV (“Victim/s”) in an employment context.

Section 15 of the Companies Act 1993 (“Act”) states that a company has a legal personality in its own right and is separate from its shareholders. This is a principle known as the Salomon principle, originating from the case of Salomon v A Salomon & Co Ltd.  The Salomon principle provides that a company is essentially regarded as a legal person separate from its directors, shareholders, employees and agents. This means as a separate legal entity, a company can be sued in its own name and own assets separately from its shareholders.

More businesses endeavour to have more ‘paper-less’ environments with the view to creating more efficient, not to mention tidier, storage systems. ‘Cloud storage’ or ‘cloud computing’ have been developed as a model for enabling convenient network access to a shared pool of resources, including networks, storage and applications, that can be accessed with minimal service provider contact.

As part of the due diligence process purchasers will generally want to look at the LIM report, obtain a Builders report, and review all aspects of title and Body Corporate records - if the property is a unit title. In addition, we now recommend that purchasers also obtain Drainage and Toxicology reports.

Based on the 2011 Australian Model Work Health and Safety Act, New Zealand’s Health and Safety at Work Act 2015 (HSWA) passed into law on 4 April 2016. New Zealand’s historically high rate of workplace deaths and near misses (notably the 2010 Pike River Mine tragedy where 29 miners died due to substantial health and safety failures) was a key motivator for the overhaul of our health and safety laws.

A trust is an arrangement in which a person (Settlor) transfers assets to selected persons (Trustees) to be held for the benefit of persons named by the Settlor (Beneficiaries).

Amendments to the Protection of Personal and Property Rights Act 1988 introduced plain language forms of Enduring Powers of Attorney (EPA) and standard explanation documents outlining the effects of appointing an attorney. These changes came into effect on 16 March 2017.

The reputation of your business may be its most valuable asset, so it makes sense that you also know how to protect it. In New Zealand you can call your business anything you like which is known as a Trading Name. Trading names are not registered, meaning it is quite possible that other businesses can use the same name, which may cost you customers. So, what can you do to prevent another business from using your trading name?

The Fencing Act 1978 prescribes the steps that a person must take before building a fence on or near the boundary with a neighbour. It is a three step process...

Many kiwis will, during their lifetimes buy and sell property. Property transactions are not simple; nor should they be. The importance and value of a property transaction alone necessitates a degree of complexity and care.

However, the transaction and how it is completed is not well understood by the general public...