Company and Trust Disputes on Separation 2024

Package includes:

Online CPD Module  l  Electronic booklet  l  PowerPoint Presentation

Package Fee (incl GST)

• $185 - NZLS members and Associate members
• $240 - Non-members

Note: Access to the online files is via your "My CPD" page. If you would like to purchase multiple packages, please contact us here.

Online CPD Module

The issues that arise when a relationship breaks down are complex at the best of times. When a business is also involved, the powers and duties of directors and trustees, shareholder and beneficiary rights and remedies and employment issues can make it all the messier. This module explores the collision of relationship property, trusts and company law to help ensure that you are able to provide your clients with robust advice and expert assistance in navigating these troubled waters.

Topics will include:

• Common issues that arise when there is a breakdown in a relationship and both parties have an interest in a business
• A toolbox of remedies and options for managing disputes involving relationship property, trust and company law, whether you are acting for the company, the trust or the individual.

Learning objectives

By completing this module you will:

• Understand the collision of issues between family, trust and company law, and what can be done about them.
• Gain clarity on options and remedies for relationship property issues from a family trust and company law angle.
• Gain both a family and commercial perspective on these issues.

Electronic paper 

Authors: Elizabeth Heaney, Bridgette White
Published: 15 February 2024
Pages: 34

Introduction

Small and medium size businesses account for approximately 97% of all firms in New Zealand, 28% of employment and contribute over 25% of our nations GDP. Many of those businesses will be operated through a company or a partnership. The Companies Office reports there were 726,359 registered companies in New Zealand as at 31 December 2023. The Ministry of Justice estimates that there are between 300,000 and 500,000 trusts in New Zealand. In 2022 7,593 couples were granted a divorce although there would have been many de facto couples who also separated. Given those figures it is unsurprising that matters regarding companies and trusts frequently arise when couples separate.

It is common for couples or one of them to operate a business in which one or both of them work. Typically this will be operated through a company with the shares being owned by one or both of them and/or trust. If there is a trust involved, the trust will typically be controlled by couple or one of them as appointors. The trustees are usually the couple or one of them and/or independent trustee and/or a trustee company of which may be controlled by an independent person or one or both partners.

Unfortunately, the breakdown of the romantic relationship often creates ripples (and sometimes tidal waves) for the business. This can result in disputes under the Property (Relationships) Act 1976 (PRA), the Family Proceedings Act 1980 (FPA), the Trusts Act 2019, Companies Act 1993 (Companies Act) and at common law and equity.

PowerPoint Presentation

These are the slides included in the presentation.