Plain language law

New Zealand law explained for everyone

Companies Act 1993

Compromises with creditors

231: Variation of compromise

You could also call this:

“How to change an approved compromise with creditors”

If you have a compromise with your creditors that has been approved, you can change it in two ways. You can either follow the rules for making changes that were included when the compromise was first approved, or you can get a new approval for the changes using the same process as when the original compromise was approved.

If you use the first way to make changes, you must tell the Registrar about these changes. The changes won’t work until you do this.

All the rules that applied to the original compromise will also apply to the changed version.

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 It might be out of date or be missing some parts.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=DLM321174.

Topics:
Business > Industry rules
Business > Fair trading
Previous

230: Effect of compromise, or

“How a compromise between a company and its creditors becomes binding”

Next

232: Powers of court, or

“Court can assist with company debt arrangements and ensure fairness”

Part 14 Compromises with creditors

231Variation of compromise

  1. A compromise approved under section 230 may be varied either—

  2. in accordance with any procedure for variation incorporated in the compromise as approved; or
    1. by the approval of a variation of the compromise in accordance with this Part which, for that purpose, shall apply with such modifications as may be necessary as if any proposed variation were a proposed compromise.

      1. A variation made as referred to in subsection (1)(a) must be notified to the Registrar and can have no effect before that happens.

      2. The provisions of this Part shall apply to any compromise that is varied in accordance with this section.

      Notes
      • Section 231(1A): inserted, on , by section 29 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).