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Limited Liability Company (Ltd)
If you run a business that is registered as a company with the New Zealand Companies Office (for example, Joe’s Plumbing Ltd) then the company is responsible for the debts. However, it is common for company directors to personally guarantee the company debt. If this is the case, the directors will be liable. | Learn more.
If the company is making a loss a receiver or liquidator may be appointed to deal with the company. You can be prosecuted if you continue to trade a company when it is insolvent.
Learn more about liquidation and the liquidation process
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The Insolvency and Trustee Service's role
The Official Assignee only deals with liquidations where it has been appointed liquidator by the court or, in certain circumstances, by itself.
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Links and people that can help
Business.govt.nz | Dealing with becoming insolvent | Free resources, tools and information to help manage your business.
Companies.govt.nz | Information on what to do when your business is in difficulty.
Sorted.org.nz | Free independent money guide, full of tools and information to help you manage your personal finances.
Personal guarantees on company debt | It is common for company directors to guarantee debts of their company.
