The Law Association of New Zealand



Directors’ Duties During Financial Distress

Register Now
Registration Closed
Submit EOI

Practical Guidance for Small Companies

Most New Zealand companies are small, owner-managed businesses, where directors must take difficult decisions quickly when cash flow tightens and the creditors begin to press. Focusing on the realities of and for owner-managed and smaller businesses, this webinar will address the practical application of directors’ duties when a company is experiencing financial distress. It will cover the core obligations under the Companies Act 1993, including the duties to:

  • act in the company’s best interests;
  • avoid reckless trading; and
  • ensure there are reasonable grounds for incurring obligation.

Drawing on the leading authorities, including Debut Homes and Mainzeal, the session will examine:

  • the warning signs that call for action; 
  • the limited circumstances in which directors may take time to assess options; and
  • the practical steps required to obtain advice, assess solvency, manage credit or interest, document decisions, and consider restructuring or formal insolvency processes.

Learning Outcomes

In respect of directors’ duties and financial distress:

  • Refresh and deepen your knowledge and understanding of the core obligations for directors under the Companies Act 1993.

In the context of financial challenging circumstances, and with reference to key cases, delve into:

  • the warning signs necessitating action; 
  • when time to assess options is permissible; and 
  • the practical steps needed for obtaining advice, assessing solvency, managing credit or interest, documenting decisions, and considering restructuring or formal insolvency processes.


Who Should Attend

Commercial practitioners, in-house counsel, and litigators. Insolvency practitioners would also find it useful.


Presenter

Damian Chesterman | Barrister, FortyEight Shortland Barristers

Damian Chesterman

Damian Chesterman is a commercial and civil barrister and arbitrator at FortyEight Shortland Barristers, Auckland. He has practised for more than 30 years and appears as lead counsel in the High Court, Court of Appeal and Supreme Court. Insolvency and directors’ duties are central to his practice. He was lead counsel throughout Robt Jones Holdings Ltd v McCullagh and Lawrence [2019] 1 NZLR 641, a leading judgment of the Supreme Court on voidable transactions.   

Directors’ duties in financial distress are a particular focus. Damian’s peer reviewed article “Potential Reforms for New Zealand’s Corporate Insolvency Regime: Guidance from Australia, the United Kingdom, the United States and the European Union” (2025) 28 NZBLQ 111, examines directors’ personal liability for trading while insolvent, including Mainzeal, and addresses whether a statutory safe harbour for directors should be available in New Zealand. As convenor of the New Zealand Law Society’s Commercial and Business Law Committee, he has reviewed reform proposals for the Companies Act 1993. 

Damian’s qualifications include an LLM (Hons) from the University of Cambridge; an LLB (First Class Honours) from the University of Waikato; a B.Com from the University of Auckland; and FAMINZ (Arb), New Zealand’s highest qualification in arbitration. He is admitted in New Zealand, Australia, England and Wales and New York.  


a149031b-c5a5-f111-b8de-70a8a553d04b

Details

Pricing Details

Ticket Price

Member: $160 plus GST
Non-Member: $230 plus GST

 





Busy schedule? No problem.
Our CPD webinars are recorded and available On Demand – offering the same CPD credit as attending live, with flexible access designed to fit your schedule. If you miss the livestream, don’t worry – you’ll receive access to the On Demand recording so you can catch up anytime. 

Click here to explore our extensive On Demand catalogue.


Registration

Registration Close Date

11/02/2027
Loading...