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Ease of Doing Business in

New Zealand

New Zealand Download Profile (1691.8KB, pdf)
Region OECD high income
Income Category High income
Population 4,595,700
GNI Per Capita (US$) 40,080
City covered Auckland

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 1 1
0
87.01 86.96 down
0.05
Starting a Business 1 1
-
99.96 99.96
-
Dealing with Construction Permits 1 1
-
87.40 87.44 down
0.04
Getting Electricity 34 28 down
6
83.96 83.96
-
Registering Property 1 1
-
94.46 94.46
-
Getting Credit 1 1
-
100.00 100.00
-
Protecting Minority Investors 1 1
-
83.33 83.33
-
Paying Taxes 11 13 up
2
90.71 90.27 up
0.44
Trading across Borders 55 53 down
2
84.55 84.55
-
Enforcing Contracts 13 12 down
1
74.25 74.25
-
Resolving Insolvency 34 32 down
2
71.43 71.41 up
0.02

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

34

DB 2016 Rank:

32

Change in Rank:

down2

DB 2017 DTF (% points):

71.43

DB 2016 DTF (% points):

71.41

Change in DTF (% points):

up0.02

Indicator New Zealand OECD high income
Recovery rate (cents on the dollar) info_outline 83.4 73.0
Time (years) info_outline 1.3 1.7
Cost (% of estate) info_outline 3.5 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 8.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 83.4
    Proceeding BizBank will want to protect its position as a secured creditor and enforce its rights as quickly as possible. Even if the hotel wants to begin reorganization proceedings, BizBank, as a secured creditor can appoint a receiver under Article 239ABK of the Companies Act. receivership
    Outcome A receiver will sell the business as a going concern to maximize the returns. going concern
    Time (in years) A receiver will be appointed in accordance with the prior agreement between the bank and the hotel. After the receiver is appointed, the appointment must be advertised in the official Gazette and at least one local newspaper. Within 2 months of appointment, the receiver must produce a statement on the state of finances of the business (section 23, Receiverships Act). The receiver must produce a report every 6 months until the termination of receivership (section 24, Receivership Act). Most of the time will be spent on appointment of a selling agent and letting them find potential buyers once the best method of sale has been determined and the property contents and particulars have been inventoried. 1.3
    Cost (% of estate) Majority of the expenses are attributed to attorney's fees (1.5%) and receiver's remuneration (2%). Other costs are minimal. 3.5
    Answer Score
    Strength of insolvency framework index (0-16) 8.5
    Commencement of proceedings index (0-3) 3.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 3.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.