At a press conference today given by Finance Minister Grant Robertson (Minister) it was announced that the government will be introducing legislation to amend the Companies Act 1993 (Act) to help companies that are faced with insolvency due to COVID-19.
The Ministry of Business, Innovation & Employment has now released Options Papers for its review of insurance contract law and also for the conduct of financial institutions. This article discusses some of the key changes being considered.
The recent decision of the High Court in Department of Internal Affairs v Qian Duoduo Limited comes as a timely reminder to reporting entities about the risks associated with failing to comply with the Anti-Money Laundering and Countering Financing of Terrorism regime under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
If you are a lawyer, accountant, real estate agent, conveyancer, high-value goods dealer, or gambling service provider (Phase 2 Entities), it is important that you have an implementation plan for Phase 2 of the Anti-Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT Act).
Once again, New Zealand is leading the way in business reform. New laws allowing equity crowdfunding fundamentally change the way that private companies can raise funds, and give them a meaningful, cost effective and efficient way of doing so. The recent implementation of the Financial Markets Conduct Act 2103 allows companies to raise up to $2 million from the New Zealand public in a 12 month period, in return for shares in their company, provided they do so via a licensed equity crowdfunding provider.
Equity crowdfunding gets green light from the Minister – no individual investor caps Cabinet has approved the regulations for equity crowdfunding which will come into force on 1 April. Equity crowdfunding will allow businesses to raise up to $2 million from investors, via a licensed crowdfunding platform, without the need for a formal prospectus or prescribed investment statement. Commerce Minister Craig Foss announced today that there will be no individual caps on the amount any investor may invest in a company raising funds via a licensed equity crowdfunding platform, provided however that a company will only be permitted to raise up to $2 million in any year. Wynn Williams has made a number of submissions on investor caps, as well as meeting with MBIE and Minister Foss, and has voiced strong support of no individual investor caps.
The New Zealand government is backing innovation and we in Australia seem to be watching on as our smaller neighbour becomes more agile and starts to get noticed overseas. The recent introduction of crowdfunding is just one example of how the entrepreneurial landscape in New Zealand is changing. With platforms such as Snowball Effect signing licensing agreements with the new regulator, the Financial Markets Authority, Kiwi entrepreneurs and investors are off to a flying financial start. Lawyer Hayley Buckley of New Zealand based Wynn Williams Lawyers estimates more than $NZ7.2 million has been raised via equity crowdfunding; $NZ5.7 million of that with Snowball Effect. Six companies have received significant investments to date, including Invivo Wines raising $2 million and capping out.