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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Yeah, yeah.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
And then I think there's also a few, there's quite a few issues in the construction industry.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
There's also things like getting that last 10% out of your head contractor is notoriously difficult.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, and so it just creates cashflow issues.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, so with retentions, um, it's just, I've just seen so many companies now they have an obligation to hold retentions.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, and then they go into liquidation and there's no retentions held.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
It's just been spent.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Really?
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
And they're usually held back for things like defects, um, to allow, you know, is that there's some incentive and motivation to come back on site, fix any issues.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, but yeah, I think retention needs tightening up because it's becoming a bit of a theme.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Directors can be personally liable.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
You know, like I've heard the latest on teak construction.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
I'm not involved with that matter.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
But, you know, I've heard that retentions weren't held and that there is going to be litigation against the directors.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Yeah.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, so, you know, directors can be personally liable for those types of breaches.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, directors can be personally liable for all sorts of, um, director breaches.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
Um, you know, if, for example, if, if, if the company was trading insolvently, um, the directors can be held personally liable for all debts incurred during that insolvent period.
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
It's kind of worth covering off because I mean, last year that got a lot easier, so
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NZ Liquidations At A 15-Year High: What’s Really Happening? w Brent Norling
I think back to like Mainzeal, I think the legal fees on that were like $20 or $25 million.