Home' Advocate Communications : Fiordland Advocate 17 March 2011 Contents HOT TOPIC
Page 6 | 17 March, 2011
Te Anau has seen an influx of
visitors from Christchurch recently
as people get away from the
earthquake-ravaged city. Our
schools have had new students
and it has been great to see how
these new people have been
welcomed into our community.
The plight of Christchurch is so
dreadful and my heart goes out to
everyone there, and particularly to
those who have lost loved ones.
It is tough to understand what is
needed in Christchurch and now,
following the events of this past
weekend, even tougher to think
about Japan and its destroyed
Council chief executive David
Adamson and I spent some time
in the northern provinces of Japan
and I was fascinated by the little
sea port villages and the beauty
of the landscape around them.
The friendliness and happiness
of the people and the pride they
had in their communities and
gardens were so special and it
is heartbreaking that so many of
them are now devastated by either
the earthquake or the tsunami
2011 is not proving to be a good
year for many of us, but in times
of tragedy people do pull together
and that is always satisfying to
see. My family and I have really
appreciated the support of the
community in the last two months
and I feel strongly we wouldn't
have got through without that. How
fortunate we are to have such a
strong sense of community in the
Christchurch is the hub of the
South Island and it is really
important that business or central
government agencies are not
relocated further north. We need
to work together to ensure they
stay. A good example of working
together is the Southern Institute
of Technology's willingness to
allow Christchurch Polytech
students to sit in on classes at its
Christchurch campus at no cost.
Having been in one or two quakes
in Te Anau, I know the quake
itself is terribly frightening but the
constant aftershocks just wear you
down. The people in Christchurch
are psychologically worn out, and
in some cases their homes and
livelihoods are gone as well. It is
so good to see how Southlanders
have rallied around and helped
more than 600 people. Staff from
Council, including building control
officers and communications staff,
have helped out in Christchurch so
there may be some projects that
face some short delays -- please
I think the huge lesson from all
of this is that we can plan for our
future, we must be prepared in
our own homes, but nothing can
prepare us for the tragedy of it all.
So as a community we have to
wrap our arms around each other
and those who are hurting and
work together for better times.
The strength of community
A huge and grateful thanks
goes out to the local BNZ
staff for their grand effort
helping to eradicate noxious
weeds from the Frasers
Beach reserve in Manapouri.
Along with four local Weedbusters,
a lot was achieved in the six hours
that was allocated through the
BNZ "Closed for Good" day.
A great day, great weather and a
huge help to our community.
Cliff and Irene Barnes,
Alister Burgess and
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Eleven-year-old Gregor Goble, of Te Anau, caught and
landed this impressive 10lb salmon all by himself while
fishing the Oreti River last Sunday. This photo was taken by
his proud Gran Mavis Carruthers.
Sale of Business
When selling a business it is important that
a comprehensive agreement is entered into
covering all relevant legal matters.
The vendors and purchasers will have
competing interests and any agreement
reached needs to be tailor made to reflect
each individual situation.
Over the course of the next few articles we
will identify areas that should be covered
in the agreement:
1. Parties to the Contract
From the purchasers point of view, it
is important to identify the appropriate
"vehicle" for the purchase, whether that
be sole trader, partnership, limited liability
company, a qualifying company or a trading
trust. The purchaser will also want to ensure
that the vendor entity is correct and that the
business is unencumbered. This can be done
by searching the Companies Office, Land
Information New Zealand and the Personal
Properties Securities Register.
2. Subject Matter of the Contract
The purchaser should obtain a list of all
plant and equipment of the business. The
purchaser will need to identify if the plant is
owned, leased or subject to a hire purchase
agreement or other security interest.
The vendor will want to minimise that part
of the price attributable to plant and will
want to sell it at no more than book value to
avoid tax on depreciation recovered in the
sale. The purchaser will want this figure to
be as high as possible.
The purchaser will need to consider the
nature, quality and approximate value of
the stock. They will also have to consider
any security interests such as retention of
title clauses and those under any General
Security Agreement and Specific Security
Agreement. Any agreement should include a
maximum percentage stock adjustment.
Goodwill may include the following:
Trade names, logos and trademarks, product
names, agencies and licence agreements,
territory and ambit of the business, debtors.
Generally speaking goodwill is on capital
account and for income tax purposes is
neither deductible not depreciable.
If the vendor is also the landlord there may
be a separate figure identified for the grant
of the lease. This is assessable income to
the vendor and a deductible expense to the
Next month we will look at the premises,
transfer of contracts, liabilities, employees
and arrangements pending settlement.
Hannah Hodson is AWS Legal's Te Anau Solicitor. Please remember that this
information is designed as a general guide and should not replace specific legal
advice on a particular issue.
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