langleytwigg

Cyber security incident at Langley Twigg

Mon, 16 Feb 2026 02:13:41 GMT

Updated 16 February 2026

On 11 January 2026, Langley Twigg suffered a third-party cyber-attack on our IT system. The below provides an update, as at 16 February, about what happened and the actions we are taking to protect our clients’ data.

Protecting your information

We want to assure you that we're taking appropriate legal action to protect your information. On 5 February 2026, we obtained an injunction from the High Court preventing all persons from accessing or distributing any stolen data. The security of our client data is of upmost importance, and this injunction provides us with legal remedies if anyone attempts to access this material. We have served the injunction to relevant websites and individuals resulting in changes and deletions in their published web content, as well as providing the injunction orders to a limited number of media outlets at their request.

Our focus remains on the thorough forensic investigation currently underway to determine exactly what was accessed, notifying affected clients directly in accordance with Privacy Act requirements, and taking all available steps to protect any impacted client’s information.

We have also implemented a range of additional security measures in response to the incident and will be taking further steps recommended by our team of security experts.

What has happened

As previously advised, we identified a third-party cyber-attack on our IT system. Some data was exfiltrated and a sample of that data was posted on a criminal website.

External forensic specialists are continuing their analysis of what data was accessed. We are progressing this as quickly as we reasonably can, while ensuring the work is done accurately and safely.

We are engaging with the Office of the Privacy Commissioner and with the New Zealand Police as their investigation progresses.

We can confirm that our email systems were not impacted as a result of the incident, you can trust emails from us, and it is safe to keep communicating with Langley Twigg.

How we are responding

Our response follows the contain, assess, notify, prevent framework expected by the Office of the Privacy Commissioner (OPC):

Contain

We have, in conjunction with our IT provider and cyber incident response specialists, taken a range of steps to ensure the incident is contained and properly remediated. This has included following best practice guidance on responding to attacks of this nature.

Assess

Our forensic and IT partners are working methodically to identify the data impacted and isolate information relating to clients and other individuals that may require notification to those individuals.

Notify

We have been communicating with the Office of the Privacy Commissioner and are working towards notifying impacted clients. Where the analysis has identified client information as being impacted, individuals have already been notified. The assessment exercise referred to above is ongoing. While we are working with experts in the area to progress this as quickly as possible, the assessment may take some time to complete. We want to avoid premature or incomplete information that could cause confusion and will provide more specific notifications as soon as we can.

Prevent

We have implemented additional security measures in light of the attack and are following a roadmap to further improve our security posture. Our system is subject to ongoing monitoring as we progress this work to ensure any further malicious activity is identified and isolated promptly.

What this means for you

If our analysis confirms that information relating to you has been affected, we will contact you directly with more information and recommended steps.

However, while our investigations and analysis are ongoing, we want to ensure you are informed and are alert to any potential suspicious activity. In particular, we reiterate:

· Please be extra vigilant and keep an especially keen eye on transactions in your bank account and credit cards.

· Stay alert for correspondence which seems suspicious or out of place, particularly if that correspondence seeks payment of some kind.

· If you are making a payment to us, we recommend you verify our bank account details over the phone by phoning one of our staff.

· You can find more details about prominent scams and how to keep yourself safe online on the National Cyber Security Centre’s “Own Your Online” website: Own your online

We are sorry that this has happened. We are working hard to identify whose information may have been compromised and ensure that those affected receive appropriate notifications.

Your usual Langley Twigg contact remains available for queries. However, if you have questions or comments in the interim we would be grateful if these could be sent to enquiries@langleytwigg.co.nz so we can provide consistent, accurate and up to date information.

Please also see our FAQs for clients

Cyber security incident at Langley Twigg - FAQs

Mon, 02 Feb 2026 21:00:13 GMT

Cyber Security Incident - Client FAQs

2 February 2026

Q: Has my personal information been stolen?

A: The investigation to date has confirmed that some client data was copied from our file server, but we are still working to determine exactly what information was accessed. This process requires working intensively with digital forensics and cyber incident response specialists to identify what information was copied from the file server, and it may take several weeks to complete thoroughly.

Once complete, we will have an accurate understanding of who and what is affected. If we confirm that your specific information was accessed, we will notify you directly, in accordance with Privacy Act requirements.

Q: Why did you take several weeks to tell me about this?

A: Please be assured that we took immediate steps to contain the cyber breach issue as soon as our security monitoring software alerted us to unauthorised activity. The time taken to email clients about the security incident and place notification on our website reflected the need to establish the facts and provide clients with accurate information about what happened.

We are working intensively with relevant authorities and independent cyber security experts to investigate the issue and will commence notifying affected clients, in accordance with Privacy Act requirements, as soon as this investigation has been completed.

Q: Why haven't I received an email from you?

A: This may be because you are not on our database as a client or that we have no or incorrect email details for you. Please contact us so we can check.

Q: Should I be worried about fraud or identity theft?

A: It's natural to be concerned and, as a precaution, please be extra vigilant and keep an especially keen eye on transactions in your bank account and credit cards. Stay alert for correspondence which seems suspicious or out of place, particularly if that correspondence seeks payment of some kind. If you are making a payment to us, we recommend you verify our bank account details over the phone by phoning one of our staff.

You can find more details about prominent scams and how to keep yourself safe online on the National Cyber Security Centre’s “Own Your Online” website: Own your online .

If our investigation determines that information requiring specific protective measures was accessed, we will contact you directly with tailored guidance.

Q: Are emails from Langley Twigg secure?

A: Our email system was not impacted by the incident and it is safe to keep corresponding with Langley Twigg via email.

However, if you receive any correspondence about your matter that seems unusual, suspicious or requests urgent payment, please contact us by phoning your usual contact or on our published numbers. If you are due to make any payment to us, please verify any bank account details by phoning us directly before making payments. Do not rely solely on emailed payment instructions.

Q: I have an active matter with you. Is it safe to proceed?

A: Yes. Our systems were restored using sanitised backup copies and measures were taken to further bolster security before restoration. There is no further unauthorised activity, and we have full confidence our containment efforts have been successful. Our systems are operational, secure and we are accelerating our planned migration to enhanced cloud-based security infrastructure.

However, we do recommend extra vigilance, particularly if your matter involves financial transactions. Please verify any bank account details by phoning us directly on our published numbers before making payments. Do not rely solely on emailed payment instructions. If you receive any correspondence about your matter that seems unusual or requests urgent payment, please contact us to verify it.

You can find more details about prominent scams and how to keep yourself safe online on the National Cyber Security Centre’s “Own Your Online” website: Own your online

If our investigation determines that information requiring specific protective measures was accessed, we will contact you directly with tailored guidance.

Q: How did this happen, given that law firms are expected to have good security?

A: Unfortunately, cyber-attacks are affecting organisations across all sectors, including law firms, healthcare providers, and government agencies. The cyber threat landscape is constantly changing and evolving, and our network was targeted by a sophisticated malicious attack using a new strain of malware that was not recognised by anti-virus programmes at the time. Our security monitoring did detect the attack quickly, however, which allowed us to take swift containment action.

We deeply regret this incident and have taken steps to further bolster our security, including accelerating our migration to enhanced cloud-based infrastructure.

Q: When will you know the full extent of what was taken?

A: We are working intensively with digital forensics and cyber incident response specialists, and it may take several weeks to complete the investigation to determine exactly what information was accessed. We will provide regular updates as our investigation progresses and, in accordance with Privacy Act requirements, will contact affected clients as soon as we can confirm specific impacts.

Q: What are you doing to prevent this happening again?

A: We restored our systems from sanitised backup copies and took measures to further bolster security before bringing them back online. There is no further unauthorised activity, and we have full confidence our containment efforts have been successful. We continue to work with our IT provider and digital forensics experts, to further improve our security posture and have implemented additional hardening and monitoring measures accordingly.

We were already in the process of moving to a cloud-based document management system, and we are now accelerating our planned migration to enhanced cloud-based security infrastructure, which will reduce the risk of any future incidents.

Q: Is my information secure going forward?

A: We understand this incident has been concerning, and we deeply regret it has happened. Our network was targeted by a sophisticated malicious attack using a new strain of malware that was not recognised by anti-virus programmes at the time.

The security of client information is our highest priority and we have been transparent about what happened. We responded quickly when the attack was detected, and have further bolstered our security. We are also accelerating our migration to enhanced cloud-based infrastructure.

We value your trust and are committed to maintaining it. If you would like to discuss this further, your usual Langley Twigg contact is available, or you can email enquiries@langleytwigg.co.nz.

Q: What should I do right now?

A: We recommend you:

• Be extra vigilant and monitor your bank accounts and credit cards closely

• Stay alert for correspondence that seems suspicious or requests payment

• If making a payment to us, verify our bank account details by phoning one of our staff

• Visit the National Cyber Security Centre's Own Your Online website for more guidance: https://ownyouronline.govt.nz

• Contact us immediately if you notice anything suspicious related to your legal matter

If our investigation determines that your specific information was accessed, we will contact you directly with more detailed guidance.

Cyber security incident at Langley Twigg

Mon, 26 Jan 2026 06:00:30 GMT

On 11 January 2026 Langley Twigg suffered a security incident that caused us to temporarily take our computers offline. Having completed further investigation, we have now confirmed that this was the result of a third-party cyber attack on Langley Twigg’s IT system. This notification sets out further information about what happened, how we have responded, and our next steps.

We deeply regret this incident and the concern it causes our clients. The security of your information is our highest priority, and we have taken every step to address this situation and prevent future incidents.

What happened?
On 11 January 2026 one of our staff became aware of unauthorised activity on our computer network thanks to our security monitoring software. In response we engaged our IT support provider to take immediate steps to contain the issue. This included switching off and disconnecting the Langley Twigg network from the internet while investigations took place. Our network was targeted by a sophisticated malicious attack using a new strain of a virus that was not recognised by anti-virus programs at the time. An update has since been deployed which recognises this new malware strain.

Before our systems were restored using backup copies, these were thoroughly sanitised and measures taken to further bolster security.

Langley Twigg has engaged digital forensics experts to work with our IT provider. Their investigation has confirmed that the incident was the result of a malicious third-party attack. Unfortunately, the investigation has confirmed that some client data was copied from our file server. We are working to determine the full extent of what was accessed.

We have notified the incident to the Office of the Privacy Commissioner and the New Zealand Police.

Next steps
We are currently working with digital forensics and cyber incident response specialists to identify what information was copied from the file server. Once this is done, we will contact affected clients and discuss steps they may wish to take as a consequence.

We are working intensively on this process, which may take several weeks to complete thoroughly. We will provide regular updates as our investigation progresses and contact affected clients as soon as we can confirm specific impacts.

At the time of the attack, we were in the process of moving to a cloud-based document management system. We are accelerating our planned migration to enhanced cloud-based security infrastructure, which will reduce the risk of any future incidents.

What you can do now
We wanted to contact you now while our investigations and analysis are ongoing to ensure that you are informed and are alert to any suspicious activity. In particular:

· Please be extra vigilant and keep an especially keen eye on transactions in your bank account and credit cards.

· Stay alert for correspondence which seems suspicious or out of place, particularly if that correspondence seeks payment of some kind.

· If you are making a payment to us, we recommend you verify our bank account details over the phone by phoning one of our staff.

· You can find more details about prominent scams and how to keep yourself safe online on the National Cyber Security Centre’s “Own Your Online” website: Own your online

We are extremely sorry that this has happened. We are working hard to identify whose information may have been compromised and ensure that those affected receive appropriate notifications.

Your usual Langley Twigg contact remains available for queries. However, if you have questions or comments in the interim we would be grateful if these could be sent to enquiries@langleytwigg.co.nz so we can provide consistent, accurate and up to date information.

Please also see our FAQs for clients

Email Scam Shockwave: Don't Be Another $200 Million Victim! (Your Essential Guide to Digital Defense)

Thu, 24 Jul 2025 20:14:16 GMT

Email Scams: Protecting Yourself from Online Fraud

Key Takeaways

In our increasingly digital world, email has become an indispensable tool for communication, both personally and professionally. However, this convenience comes with a significant risk: the ever-present threat of email scams. These deceptive tactics are becoming more sophisticated, targeting individuals and businesses alike, and can lead to substantial financial losses and emotional distress. At Langley Twigg Law, we believe in providing clear, practical advice, and that includes helping our clients navigate the complexities of online security. We want to ensure you're equipped to identify and protect yourself from these prevalent threats, especially those that might involve legal transactions.

The Prevalence and Sophistication of Email Scams in New Zealand

Email scams are a significant problem in New Zealand. Unfortunately, New Zealanders are losing an estimated $200 million a year to scams . This staggering figure highlights the need for heightened awareness and robust protective measures.

Scammers employ various types of email fraud, each designed to trick you in different ways:

Common Tactics Used by Scammers

Scammers are masters of manipulation. They often use psychological tricks and technical subterfuge to achieve their aims:

Practical Steps for Identifying and Avoiding Email Scams

Staying vigilant and adopting a sceptical mindset are your best defences against email scams:

The Importance of Robust Security Practices

Specific Risks and Safeguards in Legal and Property Transactions

Property transactions, in particular, are a common target for sophisticated email scams due to the large sums of money involved. Scammers often intercept email chains between parties (e.g., buyer, seller, real estate agent, and lawyer) and send fake emails with altered bank account details for settlement funds. This is why vigilance is critical when you are buying or selling property .

In New Zealand, our legal and banking systems have several safeguards in place to protect clients' funds:

Despite these safeguards, the onus remains on you to exercise extreme caution. Always verify bank account details for any significant payment, especially when dealing with property settlements. A quick phone call to your lawyer on a trusted number can prevent a devastating loss.

The Future of Scam Protection

Encouragingly, there are new developments on the horizon to further protect consumers. From 30 November 2025, major New Zealand banks will be required to meet new scam protection commitments. This includes providing confirmation of payee services and potentially compensating customers for losses in certain circumstances. This shift, as highlighted by DLA Piper , signals a move towards greater accountability for financial institutions in the fight against scams.

At Langley Twigg Law, we are committed to helping our clients navigate the legal landscape safely and confidently. By understanding the risks of email scams and implementing these practical steps, you can significantly reduce your vulnerability and protect your assets. If you have any concerns about suspicious communications or require legal advice, please do not hesitate to contact us.

Why Local Expertise Matters in Legal Matters

Thu, 24 Apr 2025 01:08:34 GMT

Why Local Expertise Matters: Choosing Your Lawyer in Hawke's Bay

Navigating the world of law can feel complicated, whether you're buying your first home, running a business, or planning for your family's future. Choosing the right legal partner is crucial, and when you're based in beautiful Hawke’s Bay, having a lawyer who truly understands the local landscape can make all the difference. It’s about more than just proximity; it’s about genuine local knowledge and a down-to-earth approach to providing expert legal advice and services.

So, why does local expertise matter so much when dealing with legal matters in this unique region of New Zealand? It boils down to understanding the specific nuances – from the bustling city centres of Napier, Hastings including Havelock North, to the sprawling vineyards and productive farmland that define Hawke's Bay. A local law firm brings insights that firms based elsewhere simply might not have, ensuring your legal needs are met with practical, relevant, and effective solutions.

What Does "Local Legal Expertise" Really Mean?

Local legal expertise goes beyond just having an office address in Napier and Havelock North. It signifies a deep understanding of the regional economy, the local council regulations, the specific types of property transactions common in the area (like orchards, vineyards, or lifestyle blocks), and the unique challenges and opportunities businesses face here. It means your legal team is familiar with the local courts, other professionals (like surveyors, valuers, and accountants), and the community itself.

This familiarity translates into more efficient and effective legal service. A local lawyer won't need to spend time getting up to speed on regional specifics. They already know the context, the potential pitfalls specific to a Hawke's Bay property transaction, or the common issues faced by local commercial enterprises. This inherent understanding allows them to provide proactive, insightful legal advice tailored precisely to your situation within the Hawke's Bay context.

The Hawke's Bay Advantage: Deep Regional Understanding in Practice

Think about what makes Hawke's Bay special. It's a region rich in agriculture, horticulture, viticulture, and tourism, alongside thriving urban centres. This diverse economic landscape brings unique legal considerations. A locally based law firm, like Langley Twigg Law possesses invaluable experience navigating these specific areas. Their team understands the intricacies of rural land sales, winery operations, commercial leases in Napier's Art Deco precinct, or the specific needs of farming businesses.

Here's how that local knowledge provides a distinct advantage:

What Range of Legal Services Does a Local Hawke's Bay Lawyer Offer?

A well-established local law firm typically offers a wide range of legal services to cater to the diverse needs of individuals and businesses throughout Hawke's Bay and New Zealand. You don't need to look outside the region for comprehensive legal support. Local expertise is available across many practice areas.

Firms like Langley Twigg provide expertise in areas including:

Having a local team of experienced lawyers, solicitors and legal executives means you can build a long-term relationship with a firm that understands your evolving needs, whether personal or for your business, right here in the Bay .

Beyond the City Limits: Can a Local Firm Assist Outside Napier or Hastings?

Absolutely. While having offices in Napier and Havelock North provides a convenient local base, the reach of established Hawke's Bay law firms often extends much further. They routinely assist clients located throughout the wider Hawke's Bay region, across New Zealand, and even internationally. Modern communication technology makes geography less of a barrier, but the foundational local knowledge remains a key asset, especially for matters intrinsically linked to the Hawke's Bay region (like property or local business operations).

Whether you're in Wairoa, Central Hawke's Bay, or even living overseas but dealing with legal matters connected to Hawke's Bay property, assets, or business interests, a local firm can effectively provide legal services . Their understanding of the core issues related to the region gives them an edge, regardless of your current location. They frequently handle matters for clients throughout New Zealand and for overseas clients with NZ interests.

How Does a Local Law Firm Ensure Client Satisfaction? It Starts with Understanding

Client satisfaction in legal services often comes down to feeling understood, receiving clear communication, and achieving practical outcomes. Local firms often excel here due to their inherent connection to the community and a more personal approach to law . A firm with deep Hawke's Bay roots understands the local culture and values – often translating into a more down-to-earth, friendly, and less intimidating experience for the client .

Langley Twigg, for example, emphasizes being knowledgeable and forward-thinking while maintaining a relaxed, straightforward, and genuine communication style. Their lawyers aim to make the legal process as pleasant as possible. This involves:

This client-focused approach, combined with sharp legal expertise, leads to stronger relationships and better outcomes. When your lawyer understands not just the law, but you and your connection to Hawke's Bay, you get superior service.

Ready for a Legal Partner Who Understands You and Hawke's Bay?

Choosing a lawyer is an important decision. When facing legal matters in Hawke's Bay, partnering with a firm that offers deep local expertise provides significant advantages. They understand the nuances of the regional property market, the specific challenges and opportunities for local businesses, and the unique character of the Hawke's Bay community.

From property conveyancing and commercial law to trusts, family law, and employment matters, a local team offers comprehensive legal advice and advocacy grounded in real-world regional experience. Look for experienced lawyers who combine legal skill with a practical, down-to-earth approach, making the process clear and manageable.

If you require legal assistance in Hawke's Bay, consider the benefits of local knowledge. A firm like Langley Twigg Law, your Hawke's Bay lawyers , embodies this local expertise, offering a wide range of legal services from their offices in Napier and Hastings, servicing clients throughout New Zealand and overseas. Their commitment to understanding the region and its people ensures you receive relevant, effective, and friendly legal support for whatever matter you face.

_Disclaimer: This article provides general information only and does not constitute legal advice. Laws and regulations can change, and specific legal advice should always be sought from a qualified professional based on your individual circumstances. Consulting with experienced lawyers is recommended before making any decisions based on the content of this article._

What Happens If You Die Without A Will?

Thu, 28 Nov 2024 23:44:31 GMT

What happens if someone dies without having made a valid Will?

Dying without a Will in New Zealand, known as dying intestate, can lead to significant complications for the deceased’s family and loved ones. The distribution of assets is governed by the Administration Act 1969, which may not align with the deceased’s wishes.

Assets amounting to less than $15,000

When the deceased’s assets are less than $15,000, the estate is considered small. In such cases, the next of kin can manage and distribute the assets without formal legal processes. This includes collecting assets, paying debts, and distributing the remaining assets. However, even in these simpler cases, the absence of a Will can lead to disputes among family members about who should receive what.

Assets of more than $15,000

For estates exceeding $15,000, formal administration is required. This involves applying to the High Court for letters of administration, a process that can be time-consuming and costly. The court appoints an administrator, often a close relative, who is responsible for managing the estate. This includes closing accounts, paying debts, and distributing assets according to the intestacy laws. The distribution follows a strict hierarchy: the spouse or partner receives personal chattels, a fixed sum, and a third of the remaining estate, while the children share the rest. If there are no children, the spouse or partner receives the entire estate. If there is no spouse or partner, the estate is distributed among other relatives, such as parents or siblings.

Don't die intestate - make a Will

The absence of a Will can lead to unintended consequences, such as excluding close friends, stepchildren, or charities from inheriting. It can also cause delays and additional stress for the family during an already difficult time. Having a Will ensures that the deceased’s wishes are honoured, provides clear instructions for asset distribution, and can prevent family disputes. It also simplifies the legal process, saving time and money for the loved ones left behind.

Frequently asked questions about estate administration

Who can make a Will?

In New Zealand, anyone over the age of 18 can make a Will, provided they have the mental capacity to understand the decisions they are making. A Will is a crucial document that outlines how your property will be distributed after you die. Whether or not you have a spouse, de facto partner, or children, creating a Will ensures your wishes are clear, helping to save your loved ones from unnecessary stress. Even if your possessions include just savings, jewellery or furniture, it’s important to make these arrangements.

What does a Will need to be valid?

For a Will to be valid in New Zealand, it must meet these key criteria:

Written and Signed: It must be in writing and signed by the person making it.
Independent: Wishes are those of the Will maker, expressed free from any coercion or undue influence of any other person.
Witnessed: Two witnesses (who are not beneficiaries) must see the Will maker sign and also sign the Will themselves.
Clear Intentions: It should clearly state how the deceased’s property will be distributed after death.
Capacity: The person making the Will must have the mental ability to make informed decisions.

If these requirements are not met, you may be held to have died intestate (i.e. without a Will), meaning that your property will be distributed according to a set formula determined by New Zealand Law.

What process is followed if someone dies with a Will?

When someone dies with a valid Will, a person named in the Will (Executor) is responsible for acting on the Will’s instructions on how your assets and liabilities are dealt with (“administering the estate”). This can involve:

Paying any outstanding debts.
Applying to the High Court to validate the Will and seeking permission for the Executor to act (applying for Probate)
Ensuring your assets are properly valued and distributed.

The Executor must follow the instructions outlined in the Will, making sure everything is passed over to the beneficiaries according to the deceased’s wishes.

What is Probate?

Probate is the legal process that confirms a Will’s validity and grants the Executor the authority to manage the deceased’s estate. Without probate, the Executor cannot touch the deceased’s assets, such as bank accounts, an interest in land, a KiwiSaver account, jewellery, or savings. Once probate is granted, the Executor can begin distributing the estate, ensuring everything is handled according to the Will. For small estates worth less that $15,000 in total, application for probate is not necessary.

How long can it take to obtain Letters of Administration?

If someone dies without a Will (intestate), a family member or eligible person must apply for Letters of Administration to administer the estate. This process can take several weeks or even months, depending on factors like the complexity of the estate or delays in gathering required documents. The administrator is responsible for dividing the estate according to a basic order of priority and proportion set rigidly by New Zealand law. Spouse, children, siblings and even parents may end up inheriting in a way that the deceased never intended.

Who can I ask if I would like more information about Wills and Estate Administration?

If you’re unsure about any part of the process, it’s best to consult a lawyer or contact a trusted estate administration service. They can offer guidance on making or changing your Will and help you if you are in the position of being an Executor of the estate of someone who has died. Our Estates Administration team is here to help. We can explain how these general principles apply to the situation you face or may face in the future.

Understanding the Impact of a Section 72 Natural Hazard Notice on Your Property Title

Tue, 19 Nov 2024 20:16:29 GMT

In New Zealand, we deal with natural hazards like earthquakes, floods, and landslides regularly. With climate change ramping up these risks, it’s becoming increasingly important to understand how they can impact our homes and insurance.

If you've recently applied for building consent, your local Council may have flagged your property as being at risk of one or more natural hazards. In this case, they might require a s 72 of the Building Act 2004 ‘Natural Hazard Notice’ to be registered on your title as a condition of issuing building consent.

What is a s 72 notice?

This is a heads-up to anyone interested in your property such as future buyers, lenders, and insurers letting them know that the land is at risk of a natural hazard. It also protects the Council from liability for granting building consent in these circumstances.

How does this affect you?

From 1 July 2024, the new Natural Hazards Insurance Act 2023 has replaced the old Earthquake Commission Act 1993. Here’s what that means for you:

If your property has a s 72 notice and the hazard identified in that notice causes damage to your property, the Natural Hazards Commission can decline your compensation claim, either fully or partially.
This could mean missing out on up to $300,000 plus GST to repair, rebuild or reinstate your dwelling.
Your private insurer will now have to decide how to cover (or not cover) claims related to these to known risks.
Future buyers may think twice about buying your home.

Can You Get the Notice Removed?

Good news! If you have made or will make ‘adequate provision’ to protect the land and building work from any identified natural hazard, s 72 should not apply to your building consent. If this notice has already been registered, you might be eligible to have this removed.

What Should You Do Next?

If you’ve got a s 72 notice on your title or your Council is insisting on one and you think this shouldn’t apply, it’s time to reach out to your lawyer. They can help you understand your options and what steps to take next.

Author: Caitlyn Clark

We moved! Visit our new Havelock North offices

Mon, 14 Mar 2022 07:11:33 GMT

We're now in Havelock North!

Langley Twigg has relocated its Hastings Office to nearby Havelock North, opening for business there at the end of last month. Sited on at the corner of Donnelly Street and Karanema Drive, the four-year-old building benefits from a prominent position and eye-catching livery. Its systems are fully integrated with our Ahuriri, Napier office meaning that all members of our team can easily work and meet clients in either office.

You can find details of all our legal team members!

Housing package announcement

Tue, 23 Mar 2021 07:04:36 GMT

The Government has announced a set of measures designed to meet problems in the housing market.

Assistance for first home buyers
From 1 April 2021, First Home Grant income caps lifted from $130,000 to $150,000 per couple, as well as higher house price caps (Napier and Hastings – up from $525,000 to $600,000)

Tax changes to discourage investors

Bright-line test doubled from 5 to 10 years: gains on investment properties purchased after 27 March will be subject to income tax if sold within 10 years. Exception for newly-built homes (remains at 5 years)
Main home exemption rules tightened to exclude periods longer than 12 months when the property is not the main home
Interest deductibility on rental properties purchased after 27 March 2021 will cease to be deductible from 1 October 2021. 4 year phase out for interest payment deductibility on properties purchased before 27 March 2021

Investment to boost supply

$3.8bn spending for infrastructure (roads, pipes etc.) on vacant land to accelerate housing supply
Government will allow Kāinga Ora, the Crown housing agency, to borrow up to $2bn to buy land for housing
The Apprenticeship Boost scheme is to be extended

These changes will affect many of our clients, and if you have questions, we would encourage you to contact us to discuss the finer detail. Please see the details of our team , or simply call us on 06 835 8939 or send an email to law@langleytwigg.co.nz .

Resolution of Commercial Rent Disputes

Mon, 08 Jun 2020 06:56:33 GMT

The Government has announced a scheme to assist in the resolution of rent commercial disputes between landlords and tenants as a result of Covid-19.

Implied Term
A temporary amendment to the Property Law Act (“the Act”) will be made to imply a term into all commercial leases of businesses (which meet the eligibility criteria) to provide that a fair proportion of rent and outgoings cease to be payable when a tenant’s business has suffered a material loss of revenue because of the restrictions put in place to combat Covid-19.

Eligibility Criteria
The criteria for businesses to be eligible to have this clause implied into their commercial lease are:
(a) The business has 20 or fewer full-time equivalent staff per premises;
(b) The business is New Zealand based;
(c) The business has not already come to an agreement for a rent abatement with their landlord (unless the landlord insisted on strictly enforcing the terms of the lease in response to a tenant’s request for rent reduction).

By implying terms into commercial leases, the legislation levels the playing field for those tenants who occupy premises under an older version of the ADLS lease which do not contain a “no access” clause (clause 27.5 of the 6th edition ADLS lease) which allows a fair proportion of rent to cease to be payable where the tenant is unable to occupy premises due to covid-19 restrictions (see our recent article).

However, the amendment will not apply where the landlord and the tenant have already reached agreement on the issue themselves by the date of the announcement of these amendments to the Act (Thursday 4 June 2020).

What is a “fair proportion” of Rent?
The Act will further be amended to provide clear rules to be followed when determining factors which are to be considered in determining a “fair proportion”, based on the principles that the interests of both the landlord and tenant are to be taken into account and that the financial burden of Covid-19 is fairly proportioned.

Although the legislation has not yet been drafted, it is anticipated that the “clear rules”
for determining a “fair proportion” of rent will include the following factors:

The respective financial positions of the parties;

The impact of Covid-19 on the business;

Mortgage obligations relevant to the leased premises;

Any financial support available to the parties;

The parties’ respective revenue and profit levels in recent years;

The respective parties’ ability to survive financially the effects of official

requirements to counter Covid-19;

Any difference in size and resources between the parties.

Resolution of Disputes by Arbitration
The Act will also require that any disputes under the implied clause must be settled by arbitration and will provide a government subsidy of up to $6,000 (including GST) per arbitration if at least one party to the arbitration is a small or medium enterprise receiving the wage subsidy. The purpose of this amendment is to ensure that the disputes are resolved in a time and cost efficient way, and to provide certainty and consistency.

As noted above, these are temporary amendments to the Act and it is anticipated that they will only apply for a period of 6 months after the Bill is enacted.

Family Trusts and the new Trusts Act

Mon, 11 May 2020 06:04:42 GMT

The benefits of a Trust

As the economic effects of the Covid-19 pandemic begin to creep through our country of small businesses, the benefits of having a well-documented and properly managed trust, designed to help preserve and protect all that you have worked for, are being brought into stark focus.

Over the last month the team at Langley Twigg have had some time to focus on the new Trusts Act which will impose new obligations on trustees, settlors and beneficiaries and affect how trusts operate.

We are fortunate to belong to the Lawlink network of NZ law firms, which has put significant resources into a collaborative production of an excellent template for trusts created under the new regime.

Indeed the new Lawlink Trust Deed’s primary author, Mary Joy Simpson, was a keynote speaker at the recent Auckland District Law Society “Cradle to the Grave” Conference, on the topic of “Drafting Trust Deeds”.

Since the new Act takes effect on 30th January 2021, it is important to now review existing trusts in the new legislative context to ensure that the trust operates as was intended, ensuring it remains robust, fit for purpose, compliant with the new Act, and if appropriate extending its lifespan, which may now be up to 125, rather than 80, years.

To a large extent, the Trusts Act codifies our existing trust law, whether in statute or case law. However there are changes of which all parties to a trust should be made aware, and this would form part of any review
In conducting a trust review, we would cover the following key areas:

Reasons for the trust
Why was the trust created in the first place? Common reason are: creditor protection, estate planning, relationship property, residential care subsidy, providing for beneficiaries with special needs. Many trusts will need some form of changes in light of the new Act; however for most, their existing structure will be fit for purpose, or can be made so with some variation.

In some cases though, a resettlement of the trust on another new trust which is more appropriate for the holding of assets inter-generationally may be appropriate. Alternatively, you may decide that the trust has served its purpose and can be wound up.

In many cases, variations, resettlements and winding-ups should be carried out before the Act comes into effect.

Trustees
Are current trustees willing, and able, to take on the additional responsibilities imposed on them by the Act? If not, steps should be taken to effect the retirement or removal of unsuitable trustees and, where appropriate, the appointment of new ones.

Administration
The Act imposes a heavier burden on trustees to, for example, hold and retain trust documentation, (within limits) provide information to beneficiaries, and record trustee decisions.

It imposes five mandatory duties on trustees. These cannot be modified or excluded in the Trust Deed, and if the wording of a Trust Deed (including an existing Trust Deed) purports to do so, that modification or exclusion will be invalid.

The mandatory duties are:

a duty to know the terms of the Trust;
a duty to act in accordance with the terms of the Trust;
a duty to act honestly and in good faith;
a duty to act for the benefit of beneficiaries; and
a duty to exercise powers for a proper purpose.

The Act also imposes ten default duties that must be performed by trustees unless modified or excluded in the Trust Deed.
The default duties are:

a duty of care;
a duty to invest prudently;
a duty not to exercise powers for the trustee’s own benefit;
a duty to actively and regularly consider the exercise of the trustee’s powers;
a duty not to bind or commit trustees to a future exercise or non-exercise of discretion;
a duty to avoid conflict of interest between the trustee and the beneficiaries;
a duty of impartiality to beneficiaries (however it should be noted that impartiality does not necessarily mean equality as between beneficiaries);
a duty not to profit;
a duty to act for no personal reward; and
a duty to act unanimously.

Your existing Trust Deed may already modify many of these default duties. It will be a worthwhile exercise to review existing Trust Deeds to see whether further modification is warranted to control the application of the default duties, or to ensure that they are more explicit in meaning.

Our view is that variations will need to be authorised by the Trustees and can in many cases only occur if the power to vary the Trust Deed is actually stated (our post-1992 Trust Deed template has this flexibility).
Trust review

A review of your Trust need not be a lengthy or expensive exercise, but will ensure that your Trust is fit for purpose and compliant. Like any check-up, it can help prevent problems and much higher costs down the track.

Be sure to get in touch with our Trust lawyers if you have any further questions.

How is the "Foreign Buyer ban" going to affect the Hawkes Bay Property Market?

Fri, 21 Sep 2018 05:45:28 GMT

New Zealand's Property Foreign Buyer Ban

Statistics NZ reveal that in the year ending June 2018, a mere 0.6% of houses sold in the Napier /Hastings area were sold to non NZ residents (27 houses in total). Our observation is that foreign investors tend to operate in the top end of our market where the numbers of sales are constrained (in July and August this year, only one house sold in Napier for more than $1 million).

The amendment to the Overseas Investment Act 2005 that will prevent non-NZ residents buying residential property comes into force on 22 October 2018. How exactly the Act will affect the market remains to be seen. Whereas its impact on first home buyers may be minimal, those trying to sell a top end property may face some headwinds as the ban takes effect, both directly and from the trickle-down as the Auckland market (in which 6% of sales are to non-residents) cools.

Here is some of the detail behind the Act, courtesy of fellow Law link firm Anderson Lloyd .

Overseas person
An “overseas person” (OP) requires Overseas Investment Office consent (OIO consent) to purchase “sensitive land”. An OP is:

a corporate entity with 25% or more ownership or control in the hands of persons who meet the requirements of (e) or (f), or is incorporated outside New Zealand;
a partnership, unincorporated joint venture or other unincorporated body where 25% or more of partners/members are OP, or OP have a beneficial interest in or entitlement to 25% or more of the assets, or an OP has control over 25% or more of the voting power;
a trust where 25% or more of the governing body or those with the right to control the composition of the governing body or control the trust deed are OP, or where an OP has a beneficial interests in or entitlement to 25% of more of the trust’s property;
a unit trust where the manager or trustees or both are OP, or an OP has a beneficial interest or entitlement to 25% of more of the unit trust’s property;
not a New Zealand citizen;
not “ordinarily resident in New Zealand”. A person is only “ordinarily resident in New Zealand”:
If the person is purchasing residential land, it:
holds a New Zealand residence class visa;
has been residing in New Zealand for at least the immediately prior 12 months;
is a tax resident in New Zealand; and
has been present in New Zealand for 183 days or more in the immediately preceding 12 months;
If the person is purchasing non-residential land, it:
holds a New Zealand residence class visa; and
is domiciled in New Zealand or is residing in New Zealand with the intention of residing here indefinitely (and has done for the immediately preceding 12 months).

Sensitive land
Sensitive land includes, various types of land, including residential land (being land which is rated “residential” or “lifestyle” on the district valuation roll), non-urban land over 5 hectares, land which has frontage to foreshore and seabed, land on certain islands and land which has certain special characteristics.

Tests
Now, to obtain OIO consent for investment in sensitive land, all of the following tests must be satisfied (unless a specific exemption applies), and if required, satisfied on an ongoing basis for a specified period. Conditions will be imposed in each OIO consent to ensure ongoing compliance with the required tests.

the “investor test” (except in certain circumstances where the application is under the commitment to reside in New Zealand test only, or, the increased housing test only
if the land is residential land (which is not sensitive for other reasons), then either the “benefit to New Zealand test” or at least one of:
the “commitment to reside in New Zealand” test;
the “increased housing” test;
the “non-residential use” test;
the “incidental residential use” test;
if the land is sensitive, but not residential land;
the OP (or the individual(s) with control of it) is a New Zealand citizen, “ordinarily resident in New Zealand”, or intending to reside in New Zealand indefinitely; or
the “benefit to New Zealand” test;
if the land is residential land and also sensitive for other reasons:
the “commitment to reside in New Zealand” test; or
the “benefit to New Zealand” test.

Investor test

To satisfy this test, the OP (or the individual(s) with control of it) must:

have relevant business experience relating to the investment in the land;
have demonstrated financial commitment to the investment;
be of good character; and
not be ineligible for a visa or entry permission to NZ under the Immigration Act 2009.

Commitment to reside in New Zealand test
This test is met if the OP (or each individual with control of it):

is a New Zealand citizen, ordinarily resident in New Zealand, holds a residence class visa, or is exempted by regulations;
intends (and signs a declaration confirming) to be present in New Zealand for at least 183 days per 12 month period, beginning on the date of the consent; and
becomes and remain a tax resident in New Zealand.

Anyone granted consent under this test who is not a New Zealand citizen or ordinarily resident in New Zealand must reside in the property as their main home and satisfy (b) and (c) until:

they become a New Zealand citizen or ordinarily resident in New Zealand; or
they dispose of their interest in the land.

Increased housing test
This test is met if the investment will, or is likely to result in one or more of the following on residential land:

an increase in the number of residential dwellings on the land;
construction of a long-term accommodation facility, or an increase in the number of dwellings in a long term accommodation facility (such as a rest home); or
development works to support either of the above,and the following will or are likely to occur:
the OP will dispose of the property within the period specified by the OIO consent; and
while the OP owns the property, the OP and various related parties do not occupy the property.

Non-residential use test
This test is met if the residential land will, or is likely to:

be used for non-residential purposes in the ordinary course of business of the OP (or the business of another party for whom the OP controls the property); and
not be used or held for future residential use by the OP.

Incidental residential use test

This test is met where the residential land will, or is likely to be:

used for residential purposes but only in support of the ordinary business (which is not using land for residential purposes) of the OP (or the business of another party for whom the OP controls the property); and
acquired in the ordinary course of business of the OP.

In considering whether the test is met, the Ministers may consider all or any of the following:

if there are any reasonably alternatives to the purchase of the residential land;
the proximity of the residential land to the place of business;
whether the proposed use of the residential land is as staff accommodation for the relevant business;
any other factors they consider relevant.

Benefit to New Zealand test
This test is met if:

the investment will, or is likely to, benefit New Zealand, in terms of the list of “benefit factors” in the Act. Those benefit factors include:
the creation or retention of jobs in New Zealand;
the introduction of new technology or business skills to New Zealand;
increased exports for New Zealand exporters;
increased processing of New Zealand’s primary products;
the extent to which New Zealanders will be able to participate in the investment; and
environmental protection and public access type outcomes.
where the land includes more than five hectares of non-urban land, the benefit will, or is likely to be, substantial and identifiable; and
where the land includes residential land, the conditions of the increased housing test are met.

Regulations may provide for separate “benefits to New Zealand” tests in relation to forestry activities.

Exemptions
The following exemptions are provided by the Act in respect of residential land that is not otherwise sensitive land. However, if an OP is purchasing land under an exemption from someone who acquired the land under an OIO consent, then the OP may be treated as being subject to any conditions of the original OIO consent. The Minister may also, after considering the relevant provisions, grant an individual exemption. This will provide greater flexibility under the Act.

Periodic leases: OIO consent is not required for a lease of residential land (including a residential tenancy under the Residential Tenancies Act 1986 (RTA)) which is terminable at will by either the landlord or the tenant, and offers no certainty of term for 3 years or more (including any rights of renewal).
Residential tenancy less than 5 years: OIO consent is not required for a residential tenancy for a term of less than 5 years, where the relevant land is residential but not otherwise sensitive. This applies to both fixed and periodic tenancies under the RTA.
Large developments: Developers of multi-story apartment buildings of 20 or more residential units (whether building a new building or increasing the number of apartments in an existing building by 20 or more) may apply for an exemption permitting the developer to sell a specified percentage of the residential units to OP “off the plans”, without requiring them to obtain OIO consent or to on-sell the units. Such OPs may not occupy the units themselves. The percentage of units per development that could be sold under this provision will be set by new regulations. An initial starting point of 60% is anticipated.
Where an OP has applied for consent to purchase residential land under the increased housing or benefit to New Zealand test to build or invest in developments of 20 or more units (whether building a new building or increasing the number of units in an existing building by 20 or more), the Ministers may decide not to require the on-sale of the units within a specified period (or at all), provided all new dwellings in the development are maintained as rental properties, a shared equity development, or sold under a rent to buy model. The owner may not occupy the units.
Hotel units: OPs may purchase units in hotels with 20 or more units on residential (but not otherwise sensitive) land without OIO consent, provided they enter into a lease-back arrangement with the hotel developer or operator. When the leaseback arrangement ends, the OP must either enter a new leaseback or dispose of the property within 12 months The OP may not occupy a unit for more than 30 days per year.
Exemption for network companies providing essential services: Residential land may be acquired without OIO consent by OPs providing essential services such as electricity, gas, and telecommunications, where the land is used for the provision of that service.
Existing Resource Management Act 1991 requirements: An OP of “residential land” does not require OIO consent if such purchase is required to satisfy a condition of resource consent or district plan that applied before the amended Act comes into force.
Indirect minority interests: Ministers may decide not to require on-sale of the land within a specified period (or at all) where the OIO application is for the acquisition by an OP of an indirect minority interest in rights or securities of a sensitive landowner.
Maori freehold land: OIO consent is not required for the purchase of Maori freehold land where OP is a member of the preferred class of alienees under Te Ture Whenua Maori Act 1993.
Regulations: Regulations may be passed under the Act exempting certain entities or classes of entity. The purposes of such exemptions are (among other things) to:
provide flexibility where compliance is impractical, inefficient, or unduly burdensome;
allow for exemptions that are minor technical;
relationship property reasons;
provision of network utility services; and
compliance with requirements under the Resource Management Act 1991 and to support businesses not principally using the land for residential purposes.
Australians and Singaporeans: It has been announced the Australian and Singaporean permanent residents and citizens will be exempt from the requirement for OIO consent in relation to residential land (but not other sensitive land). However, the mechanism which creates this exemption, and the exact details of it, have not yet been provided. We anticipate it will be by regulation.

Standing consents
The amended Act provides for a “standing” OIO consent to purchases of residential (but not otherwise sensitive) land to be granted. This will allow an OP to be granted OIO consent for multiple future transactions. Applications for such standing consents must be made under one of the commitment to reside in New Zealand, increased housing, non-residential use or incidental residential use tests. The OIO may impose a “use-by” date for standing consents. Standing OIO consents are also available in relation to forestry applications.

Compliance statement by OP
An OP acquiring a freehold interest or any other interest for 3 years or more in residential land must provide their lawyer with a statement as to whether the transaction requires consent under the Act. A lawyer may not transfer the property without such a statement, or if they have reasonable grounds to doubt the accuracy of the statement. A lawyer must take reasonable steps to retain the statement for at least 7 years.

Profits-à-prendre
Profits-à-prendre (Profits) are rights to take something (e.g. minerals) from land, and are commonly used in agricultural, viticultural and mining industries. Before the Bill, OIO consent was not required for the grant of a Profit over sensitive land. Now, the rules for Profits can be summarised as follows:

a Profit is exempt from the requirement for OIO consent unless it is a “regulated profit-à-prendre “;
“regulated profit-à-prendre ” means:
a forestry right; or
any other Profit, if the area of land covered by the profit is/will be used exclusively/principally for the purposes of the profit.
However, it does not include a Profit consisting only of rights to take any mineral or any class of Profit exempted by regulations.
There are also exemptions available, in certain circumstances, for Profits that are less than 5 hectares in area.

Forestry rights
As noted above, forestry rights are no longer exempted interests and therefore consent under the Act will be required for an OP to acquire a forestry right. However, the Amendment Act contemplates that regulations may be issued which provide that the benefit to New Zealand test may be satisfied for forestry investments if the requirements set out in these regulations are, or likely to be, met. We understand new regulations are currently being finalised and should be available soon. We will be commenting on these once they are issued, as they should set out the promised streamlined consenting approach for forestry transactions. The Amendment Act is otherwise generally consistent in terms of how it approaches forestry rights with the March 2018 SOP.

If you have any questions at all regarding Overseas Investment or Property Law , please get in touch with our team .

Changes to the Kiwisaver Homestart Grant

Mon, 01 Aug 2016 05:34:11 GMT

Increases to the Kiwisaver Homestart Grant

Good news for all those first home buyers (and some selected previous home buyers) out there. As of 1 August 2016 both the income and house price caps have all increased.

A individual with an income under $85,000.00 or a couple with a joint income under $130,000.00 is now eligible for the HomeStart Grant.

The House caps throughout the country have all increased by $50,000.00 for existing homes and $100,000.00 for New Builds.

Remember, if you have existing pre-approval for the HomeStart Grant but want to take advantage of these changes you will need to re-apply.

For further details be sure to chat to our property law and conveyancing team about how we can help out.

Health and Safety for Landlords

Mon, 16 May 2016 05:29:03 GMT

The New Health & Safety Legislation

The New Legislation

The Health and Safety at Work Act 2015 (HSWA) is in force from 4 April 2016. The HSWA replaces the duties owed by employers with a broader duty owed by “persons conducting a business or undertaking”. This comes with a new duty to take “reasonably practical steps” to secure workers’ health and safety.

Guidelines have yet to be promulgated for commercial landlords, therefore the general regulations will apply.

What is a PCBU?

The HSWA defines a PCBU as any person or organisation conducting a business or undertaking, whether alone or with others, and whether or not for profit or gain. The HSWA has also defined a ‘workplace’, being a place where work is being carried out, or is customarily carried out.

In the context of a commercial rental, the landlord is conducting a business by renting a building and therefore is a PCBU

The tenant conducting a business in the building would also be a PCBU, so both tenant and landlord have responsibilities under the Act

What duties does a PCBU have?

A PCBU has a responsibility to take ‘reasonably practicable steps’ to ensure the safety of workers and other persons.

This includes taking reasonably practicable steps to ensure:

The work environment does not pose risks to health and safety
Safe plant, structures and systems of work are maintained
There are adequate facilities for workers’ welfare while at work
All people receive the appropriate information, training, instructions and/or supervision necessary to protect them from health and safety risks
The health of workers and the conditions at the workplace are monitored so as to prevent workers’ injury or illness.

Practical Steps for Landlords

As a PCBU a landlord should:

Support a ‘no blame’ culture through dialogue with tenants
Track health and safety performance, identifying health and safety issues;
Investigate any incidences (including near misses) and analyse root causes;
Identify trends from incident reports and statistics and implement responses;
Ensure contractors’ health and safety;
Implement and update a health and safety management system;
Liaise with tenants to develop and operate health & safety plans for each premises, common areas such as entrances and exits and the building overall;
Comply with all Building Act requirements in respect to seismic strengthening issues.

We have started to amend our leases to reflect these changes.
We recommend that you obtain professional assistance from a recognised provider to assist with these goals.

Peter Twigg
Partner
+64 6 835 8939
peter@langleytwigg.co.nz

Sale of Maori Land

Mon, 23 Nov 2015 05:25:56 GMT

Maori Land Law Sales - A Summary

As the recent case of Steedman v Apatu in the Maori Land Court (http://tinyurl.com/qe83jtm) illustrates, the sale of Maori land is often not straightforward and can sometimes be contentious.

Maori land is defined and governed by the Te Ture Whenua Maori (Maori Land) Act 1993. Under its terms, an owner of a block of freehold Maori land can alienate (sell or otherwise dispose of the title of) that land. Whilst it is not as simple as selling general land, it can be done.

Before a sale can proceed, it is necessary to obtain a certificate of confirmation from the Maori Land Court. For the Court to issue this certificate, a number of legal requirements need to be met, some of which are mechanical issues that may be easily addressed if advice is sought at the outset.

However one aspect that is not straightforward is the role of the preferred class of alienees (PCA), members of which have a right of first refusal to acquire Maori land.

Typical examples of this class are children and whanaunga of the owner. An offer from a member of the PCA will trump one from outside the PCA, provided that the price is matched; PCA do not get to buy at a discounted price. The owner has the right to choose between offers of two or more interested PCA.

The terms of the Maori Land Act are subject to the interpretation of the courts and the case referred to above further refined the definition of whom the PCA comprises.

The Maori Land Court may require that the land be advertised or formally offered to PCA before it will confirm the sale. We can assist you to work through this process.

Cara Bennett, Senior Associate

Find out more about our Maori Land Law practice.

Commercial Leasing: Practice and Pitfalls

Wed, 30 Sep 2015 05:24:12 GMT

Must Do's In Commercial Leasing

With the general acceptance of the Auckland District Law Society commercial lease throughout the country landlords, tenants and commercial land agents can become a little complacent at the time they enter into a new lease.

When entering into an agreement to lease, the parties are agreeing to be locked into the terms and conditions of the standard form. Without reviewing its appropriateness for their circumstances, this can lead to unintended consequences.

The post-global financial crisis era has seen good landlords and tenants working together in their mutual best interests to ensure from the landlord’s perspective that their building is well let to a solid tenant, and from the tenant’s perspective that they have a building fit for purpose that they are able to profitably occupy.

The Christchurch earthquakes highlighted deficiencies in the standard form and led to it being reworked. Issues such as seismic ratings, no-access periods and remedial works were scarcely thought of in the past.

Sustainability and the move towards energy efficiency and green star design ratings can add to a property’s desirability. The new Health and Safety Legislation will add another layer of onerous responsibility onto landlords.

Potential tax implications, overseas investment issues being inadvertently triggered, and the complexities of leasing a building “off the plan” all require additional care and thought. Simple things such as who is responsible for keeping the building weather tight, maintaining the insurance for plate glass windows and payment of outgoings can lead to some confusion and may require that the standard form be amended.

For both landlord and tenant we recommend that you talk to a member of our team prior to signing an agreement to lease.

Peter Twigg, Partner

Proposed Changes in Financial Reporting Obligations For SMEs

Sun, 17 May 2015 05:23:11 GMT

Changes To Financial Reporting for SMEs

Currently all companies are required to prepare annual financial reports which can be both expensive and time consuming. For the majority of Small and Medium Enterprises (“SMEs”) the cost involved in preparing such reports often outweigh any benefit obtained from the information gathered as that information is often known to the directors and shareholders (who are often one and the same).

A number of changes have been proposed by the Ministry of Economic Development in an attempt to find a balance between the cost of reporting and the benefits that are obtained from financial reports which can assist both the directors and shareholders to make economic decisions, to promote accountability and transparency or both. It is proposed that from around mid 2013 small and medium sized companies will no longer be required to prepare General Purpose Financial Reports (“GPFRs). Instead they will be able to prepare special purpose financial reports (“SPFRs”) which may be required to comply with the tax obligations. The New Zealand Institute of Chartered Accountants are currently developing revised requirements in regards to those special purpose financial reports.

These changes will affect SMEs and will result in a reduced reporting burden for those companies. While the default position for small or medium sized companies with 10 or more shareholders will be to prepare general purpose financial reports, those companies will be able to opt out of those reporting obligations if 95% of voting shares support the motion. Companies of less than 10 shareholders will only have to prepare GPFRs if shareholders representing the 5% or more of voting shares require it. The reduced reporting obligations will reduce compliance costs for both small and medium sized companies as 1) there will be a reduction in the number of disclosures they all need to make and 2) there will be a move from reasonably complex reporting requirements to a simple type of reporting which is specifically for tax purposes.

While it is hard to quantify exactly what the cost and benefits of the amended reporting requirements will be, it has been estimated that savings of at least $100.00 per year for small companies to $5,000.00 for a medium sized company could be made.

While indications are that these changes are going to be accepted and into force in mid 2013, there remains an ongoing obligation of directors to keep accurate records and to provide those reports to shareholders.

Graham Healey, Langley Twigg

Changes in employment law

Sat, 16 May 2015 05:20:21 GMT

New Zealand Employment Law Update

In May the National Government followed up on its pre-election manifesto by passing the following changes to employment law through Cabinet.

Removing the requirement to conclude a collective agreement unless there are genuine reasons not to, while retaining the requirement to bargain in good faith.
Allowing employers to opt out of multi-employer collective bargaining before negotiations for a multi-employer collective agreement begins.
Allowing for partial pay reductions in cases of partial strike action, and
Removing the 30 day rule where workers are covered by their applicable collective agreement before deciding whether to join the union.

Three new changes were also announced by Cabinet.

The first enables employers to initiate collective bargaining at the same time as Unions. Currently Unions are entitled to a 20 day “head start” when initiating collective bargaining under the Employment Relations Act 2000. Unions could initiate bargaining no earlier than 60 days before a collective employment agreement expired while the employer only had 40 days. Unions saw this as a fundamental right as it allowed them to define the scope of the bargaining. The Government was concerned that this head start created an imbalance in the bargaining position of both parties. This change however could create timing issues if both parties initiate that collective bargaining at the same time. It is yet to be determined what the period will now be for both employers and Unions.

Secondly, Cabinet has approved the changes whereby Unions and employers will be required to provide notice of a strike or lockout. Currently notice of a strike or lockout is only required where “essential services” are involved. This will be extended to all industries. The length of the notice is yet to be determined but is likely to result in Unions being unable to conduct some industrial action, such as “lightening strikes”.

Finally, the Cabinet has approved an extension of the rights of employees to request flexible working arrangements. Currently only certain employees are able to request a variation of their working arrangement. To be eligible to make that request, an employee must have the care of a person, and must have been employed by their employer for at least six months. The amendments proposed will extend the right to request flexible working hours to all employees from day one of employment and without any requirement for caring responsibilities. The right will remain a right to request, and not a substantive right to flexible working arrangements. It is unclear whether the statutory grounds available to employers for refusing a request will remain however. These changes are expected to come into effect later this year.

For all your employment law enquiries please contact us.