Summary of Questions

Questions for Submissions

1. Do you agree with this assessment of the problems with the current Companies Act provisions?
2. Can you identify any other problems with the current business rehabilitation regime not covered in this section?
3. Do you consider that the current regime favours liquidation over rehabilitation?
4. Keeping in mind the Government's economic development objectives, do you consider the benefits of favouring liquidation over rehabilitation outweigh the costs?
5. Do you have any evidence or view that affirms or rejects the assumption that under current New Zealand law creditors will have both the commercial judgement and incentives to support rehabilitation where it is most viable?
6. Do you believe that the interests of the business and creditors as a whole would be enhanced by introducing a more comprehensive business rehabilitation regime that includes a stay on secured creditors?
7. If New Zealand were to adopt a new business rehabilitation regime then should we co-ordinate with the Australian voluntary administration procedure? What further reasons for and against co-ordinating with the Australian approach can you think of?
8. Do you consider that the Australian safeguards of the interests of creditors are sufficient? Would you support the adoption of these safeguards in a New Zealand business rehabilitation procedure? Why or Why Not?
9. Do you favour appointment of an administrator by a business, creditor or both? What are your reasons?
10. Do you consider that the reduced costs associated with an automatic stay outweigh the benefits of court involvement in the process?
11. Can you identify any reasons for departing from the Australian approach in terms of the length of the stay?
12. Do you consider that there are any good reasons for departing from the Australian procedure on the failure of an administration, which allows flexibility for a company to swap between procedures at the end of the stay period?
13. Can you identify any reasons to depart from the Australian regime in respect of control of management? In particular, do you consider this regime creates the right balance between the continuing efficient operation of the business and the prevention of further losses to the company?
14. Do you consider that there are any good reasons to depart from the Australian approach to post-filing finance and use of existing company funds?
15. Do you consider that the advantages of adopting voting provisions similar to Australian provisions outweigh the potential costs, which could include inconsistency with other New Zealand insolvency provisions?
16. Do you think that criteria similar to that in Australia for regulation of administrators would be required in New Zealand for the effective functioning of a business rehabilitation regime? In particular, can you identify any particular risks associated with having less regulated administrators involved in the management of a company under registration?
17. Do you think that the benefits identified of co-ordination with Australia in this area would outweigh the additional costs for New Zealand administrators and businesses wanting to use the procedure?