Coronavirus – Companies Act changes The government has announced today that they will introduce legislation to temporarily change the Companies Act. The key changes will safeguard directors at this time and allow businesses to “hibernate” any debt. This announcement follows similar moves in Australia and the United Kingdom. Directors’ responsibilities Under existing law, director’s may …
Coronavirus – Business Finance Guarantee Scheme The government has announced details around their Business Finance Guarantee Scheme. The intention is to assist businesses with both cashflow and operating expenses. The scheme will offer a total of $6.25 billion in loans to New Zealand businesses. The Government is guaranteeing 80% of the risk, while the banks …
The pitfalls of personal guarantees Personal Guarantees are a serious matter that make you liable for the debts of your business or the debts of other individuals. The use of personal guarantees is increasing across the board. Parents are often guaranteeing mortgages for their children. Company owners are often giving their personal guarantee on business …
