Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Share register

94: Assignee of bankrupt may be registered

You could also call this:

“When you're bankrupt, someone else can be registered as the owner of your shares”

If you’re bankrupt and you own shares in a company, the person who takes over your property (called the assignee) can be registered as the owner of those shares instead of you. This is true even if section 92 says something different.

The assignee can also be registered as the owner of shares that you beneficially own (which means you get the benefits of owning them, even if they’re not in your name). To do this, both the company and the person currently registered as the owner of the shares need to agree.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320455.

Topics:
Business > Industry rules
Business > Fair trading
Money and consumer rights > Banking and loans
Previous

93: Personal representative may be registered, or

“Registering a deceased shareholder's personal representative as the new owner of shares”

Next

94A: Meaning of ultimate holding company information, or

“Explanation of what details are needed about a company's ultimate parent company”

Part 6 Shares and debentures
Share register

94Assignee of bankrupt may be registered

  1. Notwithstanding section 92, the assignee of the property of a bankrupt registered in a share register of a company as the holder of a share in that company is entitled to be registered as the holder of that share as the assignee of the property of the bankrupt.

  2. Notwithstanding section 92, the assignee of the property of a bankrupt beneficially entitled to a share in a company, being a share registered in a register of that company, is, with the consent of the company and the registered holder of that share, entitled to be registered as the holder of that share as the assignee of the property of the bankrupt.