The Construction Contracts Act 2002 (the “CCA”) was introduced because the New Zealand construction industry was behaving badly at the turn of the century.
Payments weren’t flowing down the chain to where they were badly needed, and disputes took far too much time and money to resolve. So the Government followed the lead already taken by a number of other western countries, and passed the CCA to address these issues. The main thrust of the CCA is to get payment to the contractors at the bottom of the pile promptly, and the two main ways it does that, are payment claims and adjudication.
You may be aware that under that law, you can be made to hand back the money that your customer has paid you, any time in the last two years, if he goes bust
You may have heard of the law called "voidable transactions". You may be aware that under that law, you can be made to hand back the money that your customer has paid you, any time in the last two years, if he goes bust. And you may be aware that our Supreme Court has recently issued a ruling that has radically changed the law. This newsletter tells you what it’s all about.
Timeshares originated in Europe after World War II, and were finessed in the UK and USA over the following decades.
Now they are an international phenomenon, and New Zealand has one of the highest rates of timeshare ownership in the world.
It happened when Levenes and Palmers Garden Centres went into receivership several years ago.
And it happened again when Whitcoulls and Borders were recently put into administration. People holding unredeemed gift tokens or vouchers (including my 11 year old daughter) were told that they would not be redeemed for their face value. The best they could do was buy a product for at least twice the face value of the token, and get a discount equivalent to that face value, with the rest of the price payable in cash. How is it that retailers can get away with this? What is the relevant law?
When you sell goods and services on credit, you run a risk, and that risk is that your customer won’t pay you.
That could be because they don’t like the quality or standard of the goods or services you have supplied, or it could be because they are short of money. If they are short of money, chances are that there are a lot of other suppliers who haven’t been paid as well. In that case there is going to be a contest between you and the other creditors as to who gets paid first. And that will come down to who is the most resourceful when it comes to putting pressure on the debtor.
When someone invents a new “must-have” piece of technology, writes some ground-breaking software, or devises a brilliant solution to a world-wide need, it is incredibly exciting.
Visions of celebrity status or an early retirement on the super yacht surrounded by Playboy bunnies or toy boys come flooding in. All they have to do is tell the world about their product or service, and the world will beat a path to their door. Or so they think.
There are two things that prudent investors demand (or should demand) before investing.
Companies that grow (or plan to grow) to such an extent that they need to go to the general public for funding, have to make themselves attractive to the investing public in order to secure funds.
Anyone from the baby boomer generation like me will know that ethics and morality aren’t what they used to be.
My parents’ generation were by and large honest, considerate, respectful, polite, and law-abiding – and some would say too homogenous as a result.
There are a number of possible explanations for the fact that we in western countries enjoy a much better standard of living than our ancestors did.
Many economists and historians put it down to the emergence of limited liability companies in the mid 19th century. This enabled traders, entrepreneurs and businesspeople to carry on business without the risk of losing all their personal assets if the business turned sour. This caused trade to flourish. The whole idea of a limited liability company is that your creditors can only look to the company for the payment of their debts, and cannot go behind the company to get at the shareholders’ assets.
Many businesses reach the stage where they have some golden opportunity waiting to be exploited, but the proprietor doesn’t have enough money to pay for it.
In those circumstances the obvious thing to do is to raise the money from someone else. There are numerous sources you can go to for finance. These include friends and family, colleagues or staff who want to take a stake in the business, potential joint venture partners, professional investors, banks and finance companies, angel investors and venture capitalists, Government grants, and the public at large.