Insights & Articles

In the third article in this series we focus briefly on the second limb of due diligence that should be considered when purchasing a vessel namely, legal due diligence.

Consider these five tips before entering into an agreement.

Buying a boat (or any major asset for that matter) without undertaking due diligence is exactly like reality shows where the participants either get married or go on blind dates with someone they have never met before. Sometimes things pan out and we are stoked for them, but more often than not we sit glued to the television waiting for the inevitable train-wreck to unfold.

In accordance with Section 131 of the Companies Act 1993 ("Act"), directors have a duty to act in good faith and in what they genuinely believe to be the best interests of the company. While it may be expected that directors should always behave in such a manner, and not place their personal interests ahead of the company's, various judgments have explored the extent of this duty and provided more information about the considerations director should take account of when exercising their powers.

Previously, under the Limitation Act 1950 ("the 1950 Act") claims to recover money owing under a deed or mortgage, had to be brought within twelve years of the money falling due for repayment. However under the Limitation Act 2010 ("the 2010 Act"), this has been reduced to a limitation period of six years.

The Court of Appeal has handed down a significant decision that will encourage confidence for victims of domestic violence, who apply to the Family Court for a protection order.

Often in commercial contracts, parties agree that they will use their "best endeavours", their "reasonable endeavours" or their "all reasonable endeavours" to perform certain actions or to achieve a certain outcome. But what do these terms mean in reality? While there are no set definitions and much is dependent on the particular circumstances, we are able to make some practical comments about the requirements of each of these terms so you have a clear idea of what you are agreeing to.

Ross Bedford (Partner) and Tony Coupe (Consultant) are Notaries Public and both are available, on appointment, to provide notary services.

The High Court, in Broadbent v The Chief Executive of the Ministry of Social Development [2017] NZHC 1499 (a test case), has told the Ministry of Social Development that it is not correctly applying the means testing assessment for income when determining someone's eligibility for a residential-care subsidy.

Non-Executive or Passive Directors and Directors' Duties: The Courts Take no Excuses for a "Hands Off" Approach

In New Zealand, there are few prohibitions on who can become a director of a company, and no real qualification requirements. This means that some people become directors without actually understanding what their role requires. This can result in a company not being managed and governed as required by the Companies Act 1993 ("Act"), which in turn can lead to a breach of duty, which can have very serious consequences, up to and including personal liability for company debts or even criminal sanctions in the worst of cases.

Mike Pero was the sole director of MPRE Limited and its wholly owned subsidiary MP Real Estate Limited (the MPRE Companies), companies described in the decision as a joint venture between a company ultimately owned by Mike Pero that held a 50% stake and MP Mortgages Limited which held the other 50% stake.