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Advisory: ICNZ welcomes Government steps to provide liability relief for Directors

09 Apr 2020

ICNZ supports the move by the Government to provide a ‘safe harbour’ for directors of companies facing significant liquidity problems due to COVID-19 pandemic.

The move is part of wider temporary changes being made to the Companies Act announced by the Government last week.

Tim Grafton, ICNZ CE, says the proposed changes will allow companies to confidently explore options to continue trading rather than closing down.

“Directors will have greater freedom to find new ways of doing business as they navigate their companies through this challenging time.

“These types of steps offer practical support to businesses, helping them remain viable and keep Kiwis in jobs - ultimately supporting the recovery of our economy post COVID-19.

“While these measures give directors some comfort to navigate through these tough times, they will still have to act in good faith and in the interests of their company while taking into account the interests of creditors.”

More information about the temporary changes can be found on the Beehive website. And comment from the institute of Directors can be found here.