New Zealand has been experiencing a striking rise in company failures, focusing attention on the role of directors when facing financial trouble.
Corporate insolvencies have now reached their highest levels in 15 years, with thousands of firms entering liquidation or other formal processes in 2025.
This surge has coincided with a new Law Commission review of directors’ duties – the first comprehensive assessment since the Companies Act was passed three decades ago.
The review, due to report in 2027, will examine the core duties imposed on directors, their liability for breaches and the wider set of laws that place personal obligations on them.
At a time when a concerningly large number of companies are collapsing, two key…