12 June 2026 Winding Up Applications An interesting month for winding up notices. Historically May is a slower months one where the status quo is maintained and notice levels tend to flatten out until July where they start to grow again toward the end of the year. In May 2026 we did see 110 notices in the month, higher than any previous May’s since 2016 where we saw 116 in the month. The key difference here on past years has been the early drop off in IRD advertised notices. This could be for a number of reasons: Public holidays (Kings birthday) being observed on 1 June would drop notices around this time as people take long weekends, The growing tax…

12 June 2026 Budget 2026 may not have been pitched as insolvency focused, but in practice, that’s exactly what parts of it deliver. Two changes stand out. First, unpaid shareholder current accounts will now be taxed six months after a company is liquidated or struck off. Second, Inland Revenue is getting a further $15m per annum to sharpen its enforcement capability. Anyone working in insolvency will recognise the problem immediately. Overdrawn shareholder current accounts have long been a fixture of SME failure. A business gets into trouble, drawings have accumulated, and the balance sheet shows a receivable from the shareholder that is rarely recoverable in any practical sense. The company fails, the loan sits there, and in many cases nothing…

11 May 2026 Winding Up Applications April 2026 NZ Liquidation Winding Up Applications keep the ball rolling on the continued highs of the last 10 years with the largest 4 months to start to year. Of note the applications for the month were slightly behind 2024's figures for April, this was driven in 2024 by a bumper month for non IRD creditors chasing debtors. IRD however have continue their above past years enforcement levels and have yet to slow up. At this stage in the year historically Winding Up Applications have levelled out somewhat till they once again jump in July to peak in November. We remain on track to beat out 2025 for total applications for the year. We…

11 May 2026 In New Zealand there is a critical window following the service of a winding up (“liquidation”) application on a company’s registered office. Practitioners commonly refer to this as the “10 working day rule” a practical and strategic timeframe that can significantly affect a company’s ability to control who is appointed as its liquidator. This article explains the rule, its legal foundation, and its implications in practice. Overview of the Rule Once a winding up application is served on a company, the company has 10 working days in which it can still appoint its preferred liquidator (typically via shareholder resolution) without needing the consent of the applicant creditor. After the 10 working day period expires: The company loses…

11 May 2026 Over the past 12-18 months, many New Zealand businesses have been navigating what can best be described as a “slow squeeze.” It hasn’t been a single catastrophic event, but rather a steady accumulation of pressures, these include rising interest rates, increased input costs, tighter consumer spending, and delayed payments. For professional advisers working closely with clients, the challenge is recognising when normal trading stress crosses the line into genuine insolvency risk and knowing what to do next. From Pressure to Distress: The Warning Signs In our experience, business failure is rarely sudden. Instead, it follows a familiar pattern. Early recognition is key to preserving options and protecting outcomes. Some of the more common early indicators include: Persistent…

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…