The Blog

Mark Copeland of Mark Copeland Lawyers, IR Global’s Commercial and Real Estate Member in New Zealand, recently attended the PyeongChang Winter Paralympic Games in South Korea. Mark is the Chairman of the Legal and Ethics Committee of the International Paralympic Committee (IPC), and is responsible for dealing with all formal ethics matters within Paralympic sport as well as chairing the Appeals Adjudication Panel for athlete impairment classifications. Mark is shown here with the Mascot for the Paralympic Games (Mark has the glasses!) and also with Andrew Parsons, the IPC President. According to Mark these Winter Paralympic Games were the best to-date: more nations won winter Paralympic Medals than ever before, more nations won a gold medal than ever before and more athletes competed in each sport than ever before. I have seen a lot of Paralympic sport, but to see leg and arm amputees snowboarding at a world class level, … Read More

Which techniques are typically used by international counterparties in New Zealand to overcome what appears to be an insurmountable obstacle? It’s common for New Zealand negotiators to ‘park’ or at least slow discussions down when seemingly intractable issues arise. Stepping back further consider the issue from differing angles is considered prudent to business practice. Kiwis pride themselves on the nation’s ‘No 8 Wire’ mentality, which essentially means that there is a solution to everything. In this vein New Zealanders are very good at thinking outside of the box, and offering alternative commercial options or solutions. But this can take time, and normally a transaction will not be signed off until ALL material commercial issues are in fact resolved. ‘Agreements to agree’ at a later date are anathema to New Zealand corporate advisors. If alternative solutions are not immediately achievable, Kiwi companies – particularly larger corporates – may agree to resolve … Read More

What negotiation approaches are least likely to achieve a satisfactory resolution of a deal in NZ? Any behaviour which negatively affects the creation of such trust can put the conclusion of such transactions at risk. This is because, with a population of only four million, New Zealand remains a country where most business is done through personal contacts. Rightly or wrongly Kiwis tend to carry this approach through to international negotiations. For cross-border M&A transactions, New Zealand companies and their advisers will have performed due diligence on the foreign transaction entity at an early stage, and will expect that such homework is reciprocated. As it is insulting for US businesses to be mistaken as Canadian, so it is insulting for New Zealand businesses to be considered Australian. Not because there is anything wrong with Australia, but because this displays a lack of professionalism and understanding of pan–global and regional economic … Read More

What are some of the negotiation approaches that are most likely to achieve a deal in New Zealand? New Zealanders are known world-wide for their willingness to speak and act directly, with little need for prior formalities. However,as for most cultures, establishing trust in negotiations is very important. Without such trust, the resolution of deal obstacles may be impossible. As for any commercial negotiation, preparedness is important. New Zealand may be a country far away from most others, but its business people are typically very well informed on a global level, and Kiwi legal and financial advisers are generally as good as any professionals in the world. Obstacles in international commercial negotiations are inevitable. Where New Zealand entities are involved, the best approach for foreign entities to adopt is to fully understand their transaction drivers, so that the commercial reasons for wanting a certain position or outcome can be clearly … Read More

Key regulatory barriers to consider before commencing business in New Zealand Overseas Investment Office (OIO) con­sent may be required if target businesses possess signifi­cant business assets, where the cost of a business acqui­sition, or the value of the applicable New Zealand assets, exceeds NZD100 million. It is also required for an interest in sensitive land, or a fishing quota. All applicants for consent are required to meet the investor criteria of business experience and acumen, financial com­mitment and good character. They must not be ineligible individuals under the Immigration Act. Transactions occurring outside New Zealand may still require OIO consent if the target business has interests in land or other assets in New Zealand. OIO implications for offshore transactions should be assessed early in the transaction process to ensure that timeframes do not cause unnecessary delays. The consent application process is administered by the OIO and governed by the Overseas Investment Act … Read More

Overseas Investors in New Zealand Overseas persons can own assets and operate businesses in New Zealand, although overseas entities will need to obtain a New Zealand tax number and may be required to register for NZ Goods and Services Tax. Overseas companies and limited partnerships which intend to carry on business directly in New Zealand need to register with the New Zealand Companies Office. NZX operates the two main capital markets in New Zea­land. The NZX Main Board, New Zealand’s principal mar­ket for equity securities, has around 160 issuers, which al­lows investors to trade in some New Zealand’s largest and most well-known companies, while the NZX Debt Market, allows investors to trade in a wide variety of debt securi­ties, including New Zealand government bonds. There are several governmental bodies that can assist overseas investors to set up or manage investments in New Zealand. The New Zealand Trade and Enterprise (NZTE) … Read More

New Zealand is second amongst OECD countries for the competitiveness of its taxes overall according to the Tax Foundation’s 2016 International Tax Competitiveness Index (ITCI). Transparency International’s 2017 Corruption Perception Index ranked New Zealand the least corrupt country in the world. New Zealand’s unmatched quality of life and thriving but stable business environment makes it an ideal destination for savvy investors and entrepreneurs. The New Zealand Government actively promotes growth and innovation with a range of business and migrant-friendly policies. There are investment opportunities in many fields, in both traditional business sectors and in new, often highly in­novative areas. Just some of the areas where New Zea­land is doing exceptionally well include information and communications technology, tourism, film and special ef­fects production, biotechnology, agricultural research, and wood-based technology. New Zealand benefits greatly from its ties in the Asia-Pa­cific Region – The Association of Southeast Asian Nations (ASEAN), of which it … Read More