1 April 2026 Winding Up Applications There will be a few instances of this saying in this article but for the first quarter of 2026 we have had the highest first quarter in the last 10 years. Comparatively we have had more winding up applications in 3 months than we had in all of 2020. Businesses remain under the pump, with factors both inside and outside their control (war, fuel prices etc.) negatively affecting their bottom line and putting on the squeeze. Unfortunately, when this has happened in the past and when it inevitably happens again companies tend to step paying “The Bank of IRD” first. This in turn leads to the IRD debt growing and IRD taking more enforcement…

14 April 2026 Liquidation is commonly misunderstood as something that only happens when a business has failed to pay its creditors. While creditor pressure is certainly one pathway to liquidation, it is far from the only one. In practice, many liquidations arise from non‑financial or non‑creditor driven factors. These situations often involve people, strategy, risk management, or changes in circumstances rather than mounting arrears. Understanding these scenarios is important for directors, shareholders, and advisers, as early and informed decisions can preserve value and reduce risk when it does become time to consider liquidation as an option. Below are some of the most common situations where liquidation is not driven by creditor action that we see. Shareholder or Director Disputes One…

14 April 2026 From a liquidator’s perspective, non‑registration or defective registration on the Personal Property Securities Register (“PPSR”) remains one of the most common reasons creditors lose priority and, in many cases, recover nothing in an insolvency. In most insolvency appointments, one of our early tasks is to determine the priority of competing claims over company assets. That exercise is heavily influenced by PPSR registrations. Where a creditor has failed to register, or cannot support a registration with enforceable documentation, the outcome is often commercially severe and entirely avoidable. Security Interests Apply to More Arrangements Than Many Businesses Realise Despite the Personal Property Securities regime having been in place for well over 25 years, many businesses remain unaware that it…

Insolvency by the Numbers #62: NZ Insolvency Statistics February 2026 What have the insolvency numbers done in February 2026, we also look at what could be instore for the rest of the 2026 for personal and corporate insolvency. Winding Up Applications We have started off the year with a bit of pressure seen in the number of winding up applications advertised, it has exceeded what we saw in 2025. Businesses are still under the pump, and it is being driven by the IRD in large part making up 193 of the 275 January and February winding up applications. February had 160 applications advertised making up for the slightly slower start seen in January 2026. February 2026 was the 2nd highest…

1 March 2026 As licensed insolvency practitioners, our principal duty under section 253 of the Companies Act 1993 (copied at end of article) is to take possession of, protect, realise, and distribute assets to creditors in a reasonable and efficient manner. This statutory obligation sits at the core of how McDonald Vague operates and guides our approach on every appointment. In practice, this means returning funds to the people and organisations who rely on them most employees awaiting wage and holiday pay arrears, small business owners needing overdue funds to stabilise cashflow, and the IRD chasing their tax arrears. Ensuring meaningful distributions is central to our role and a key measure of effective insolvency administration. Our ability to make distributions…

1 March 2026 In situations where PAYE has been deducted from wages but not paid to Inland Revenue, directors and associated persons of close companies may face unexpected personal tax consequences. Inland Revenue has the ability under Section LB 1(3) of the Income Tax Act 2007 to reassess an individual’s tax return and limit their PAYE tax credits to the amount actually received by the Commissioner. Given the number of liquidations we manage where PAYE arrears are present, it is important that directors understand this rule. The article below explains how the section operates and why Inland Revenue may invoke it. Section LB 1(3) — Income Tax Act 2007 We want to take this opportunity to draw your attention to…

Insolvency by the Numbers #61: NZ Insolvency Statistics Year End 2025 and January 2026 What have the insolvency numbers done in 2025 along with January 2026, at the same time we take a look at what could be instore for the rest of the 2026 for personal and corporate insolvency. Winding Up Applications Surprising no one based on how the first 11 months of 2025 were tracking we finished the year with 1289 winding up applications for the year, well above any of the past 5 years and reinforcing that we are yet to see the end of the pressure businesses are facing. The January monthly total was 115 applications, slightly down on the 2025 total of 130 application. This…

Solvent Liquidations Explained In our experience, one of the most common misconceptions directors and shareholders hold is that liquidation is only relevant when a business is failing. In reality, many New Zealand companies are wound up while fully able to meet all of their obligations. A solvent liquidation is simply a structured and legally robust way to bring a company’s affairs to an orderly close when it has served its purpose. A solvent liquidation applies where the company can pay all of its debts, including interest, within 12 months. We typically see solvent liquidations where a company has sold its business or has ceased trading, a project or investment vehicle has run its course or a group is simplifying its…

Incorporated Societies: the April 2026 cliff edge under the Incorporated Societies Act 2022 From 5 April 2026, every society still on the register under the Incorporated Societies Act 1908 must have made a deliberate choice: re‑register under the Incorporated Societies Act 2022, wind up properly, or accept that it will be struck off and will cease to exist as an incorporated society. The Companies Office has been clear that re‑registration is not automatic and that societies that miss the deadline will simply no longer exist in their incorporated form. If your society does nothing, it stops existing If your society takes no action by 5 April 2026, it will be removed from the register and will no longer have a…

What has happened with the insolvency stats during November 2025 when compared with the last few years for personal and corporate insolvency ahead of the Christmas break. Winding Up Applications Winding up applications for November 2025 took off like a shot on the back of IRD chasing a group of 45 sushi companies with common stakeholders. Even with the 45 group winding up applications removed the monthly total would remain well above previous November highs and only slightly down on the highs seen so far throughout 2025. The monthly total was 167 applications the highest in the last 6 years , these applications are now starting to be advertised with February court dates reinforcing the courts will be pumping into…

Liquidation of Charities or Not for Profit’s Many Charities and NFP organisations are facing reduced income as a result of the current economic conditions and government changes to grants making fund raising more difficult. We thought it was timely to look at the steps to take when a charity is no longer able to meet its intended purpose and mission statement. There are several critical steps and legal obligations a Charity must consider to wind up responsibly and protect its charitable status: Legal and Governance Considerations Review the charity’s rules or trust deed: Most registered charities have a wind-up clause that outlines how assets should be distributed and what procedures must be followed. Comply with the Charities Act 2005: Officers…

The Risks of Surrendering Business Assets to the Landlord Before Liquidation. It’s becoming increasingly common for business owners when they get themselves into financial trouble to close the doors and walk away. From the landlord’s perspective this can be ideal as they get left with a site that may be easier to lease due to existing fixtures and fittings for a similar type of business. They may have had to sacrifice some unpaid rent and a personal guarantee to gain control of the assets. From the director’s perspective they often see this as a solution where they can remove an ongoing obligation for the rest of the lease term and get out of a personal guarantee. The issues arises when…