News / Events

The Government will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and keep New Zealanders in jobs.

Announced on Friday 3 April 2020, the temporary changes include:

• Giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency duties under the Companies Act,
• Enabling businesses affected by COVID-19 to place existing debts into hibernation until they are able to start trading normally again,
• Allowing the use of electronic signatures where necessary due to COVID-19 restrictions,
• Giving the Registrar of Companies the power to temporarily extend deadlines imposed on companies, incorporated societies, charitable trusts and other entities under legislation, and
• Giving temporary relief for entities that are unable to comply with requirements in their constitutions or rules because of COVID-19.

“These measures will support the Government’s work to cushion the economic impact for New Zealand and to support businesses and protect jobs and incomes,” Finance Minister Grant Robertson said.

“We are announcing these decisions now to give businesses certainty that these measures are being worked through. We will be asking Parliament to agree to make some of these changes retrospective.

For more information on the support package, including criteria and how to apply, visit the companies office website.

For a summary of the various support measures available to individuals and businesses in response to COVID-19 visit the relevant pages on the Screen Sector COVID_19 Action Group website.