Insights & Articles

The AML/CFT Act was extended to lawyers and conveyancers on 1 July 2018. It will be extended to accountants on 1 October 2018 and will be further extended to Real Estate Agents on 1 January 2019. We also consider many financial service providers (including in some cases of businesses offering credit contracts) may be unaware that they are required to comply with the AML/CFT Act or may not be meeting the standards required.

It is a fairly familiar situation: an employee sustains an illness, or suffers an injury – probably due to no fault of their own or their employer - and is unable to work for a long period of time. Uncertainty may arise about when he or she can return to work, if ever. Repeated visits to a doctor or specialist, frustratingly for both the employee and the employer, fail to provide a definite prognosis about when the employee will be fit to return to work or, indeed, whether they will ever be able to do so. Meanwhile the employee may be receiving no income, or less than their full former salary or wage while receiving an ACC benefit. The employer is also left in the difficult and uncertain position of not being able to hire a permanent replacement employee but needing to reassign the absent employee's tasks to others, or make do with a potentially more expensive temporary employee.

Companies that provide goods or services on standard terms (including credit terms) should be regularly having a legal health check of their terms and their practices for ensuring the terms they are using accurately reflect their business practices, meet all of their requirements and cover off their key risks – as well as ensuring they are appropriately brought to the attention of customers or clients so that they are valid, enforceable or binding.

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

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.

In the current Covid-19 environment we are seeing a significant increase in the number of redundancies. We have set out briefly below a few points to bear in mind if you are thinking about making roles redundant.

This week the Employment Relations Authority ordered Rocket Lab Limited ("Rocket Lab") to pay $97,000.00 to an employee for an unjustified dismissal. Mr Owen was employed by Rocket Lab in January 2018 as a Vehicle Test Manager. Rocket Lab did not give Mr Owen an induction, he was essentially expected to 'get on with it'.

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.

Purchasing an interest in a retirement village is not like purchasing a residential property. There is an ongoing relationship between the village operator and the resident which is governed by the terms and conditions set out in what is called an "Occupation Right Agreement".

In the wake of the Covid-19 lockdown, many employers are assessing options available to them to save their business and are contemplating cutting staff. This decision should not be taken lightly as the underlying requirements for proper termination of employment still apply.

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.

There are a large number of statutes that potentially apply to any business providing financial services or products in New Zealand. We are aware from prosecutions by regulators and from assistance that we have provided to clients, that many people are unaware of the full compliance requirements that relate to their business. In some cases, businesses may comply with one statute, but are unaware that there are other statutes that apply.