Insolvency relief for businesses impacted by COVID-19

The Government will be introducing legislation to make changes to the Companies Act to help businesses facing insolvency due to COVID-19 to remain viable, with the aim of keeping New Zealanders in jobs.

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 for up to 7 months
  • 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
  • giving temporary relief for entities that are unable to comply with requirements in their constitutions or rules because of COVID-19.

How these new measures will work

Related information

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