New Zealand: Law Commission report on multiple defendants proposes capped liability scheme for auditors

Earlier this year the New Zealand Law Commission published its report Liability of Multiple Defendants: see here (pdf). The Commission has concluded that the system of joint and several liability is the preferred system and that it should remain the general rule. This said, the Commission has proposed some adjustments to the current regime, including the introduction of scheme whereby the liability of auditors and audit firms can be capped in respect of large or complex audits including the audits of listed companies.