Burton and Co Blog

We are seeing an increase in popularity with the use of New Zealand foreign trusts being set up by nonresidents of New Zealand.   The principal benefits of using such a structure are:
• An aid to asset protection and succession planning.
• Flexibility.
• The confidential nature of a trust.
• The fact that New Zealand is a stable, onshore, whitelisted jurisdiction and is not regarded as a tax haven.
• The limited reporting requirements and compliance obligations.
• No tax being payable to the New Zealand Inland Revenue Department on foreign earned income. Read more...

The 6th edition of the ADLS deed of lease was released today.  It contains a raft of improvements and amendments whilst maintaining the structure of the lease which is familiar to so many of us and widely accepted in the marketplace.  Whilst the current soft ratchet has been retained, the standard form now usefully contains a CPI rent review clause option which will allow this form of rent review mechanism to be easily adopted in a standardised manner.  Whilst largely familiar, the outgoings provisions have also been overhauled and updated.  Unsurprisingly the quantum of the insurance excess contained in the outgoings provisions has been increased from $500 to $2,000.  Landlord access for repairs (and importantly earthquake strengthening) has also been addressed as has the tenant's repairs and maintenance provisions.  So whilst the substance of the form is largely the same there have been some significant improvements and amendments.  Tenants and landlords alike would be well advised to review the new form.

It seems that Shanghai Pengxin's application to buy the Crafar farms may be heading all the way to the Supreme Court.  Two of the trusts within the consortium orginally led by Michael Fay are reported to have recently filed a further challenge with the Supreme Court funded by an undisclosed financial backer.   Read more...

Further to our earlier comments in relation to earthquake prone buildings the market is now seeing the practical commercial fallout from the increasing focus on earthquake prone buildings. Read more...

The New Zealand Court of Appeal this morning released its much awaited decision in relation to the lastest challenge to Chinese company Shanghai Pengxin purchasing the Crafar farms.  Read more...

The PPSA and Terms of Trade Read more...

Perhaps a timely reminder that body corporate rules promulgated and registered under the Unit Titles Act 1972 will fall away and be of no further effect on 1 October 2012.  From 1 October the new rule provisions in s105 of the Unit Titles Act  2010 and the default Operational Rules (the new terminology for the new rules) will automatically apply and override any old body corporate rules.  Those body corporates that already have registered rules tailored to their particular developments would be well advised to sharpen their pencils and start work on a new set of rules well in advance of the 1 October 2012 deadline.