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Companies Act 1993

Voluntary administration - Preliminary

239A: Objects of this Part

You could also call this:

"This part explains how to help struggling companies survive or wind down fairly"

This part of the law is about helping companies that are having money problems or might have money problems in the future. The main goals are:

  1. To try and keep the company, or as much of its business as possible, running.

  2. If the company can't keep going, to make sure the people and businesses it owes money to (creditors) and its shareholders get more money back than they would if the company closed down right away.

These goals are meant to give the company a chance to sort out its problems and possibly recover, or if that's not possible, to get the best outcome for everyone involved.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321193.

Topics:
Business > Industry rulesBusiness > Fair trading

Part 15AVoluntary administration
Preliminary

239AObjects of this Part

  1. The objects of this Part are to provide for the business, property, and affairs of an insolvent company, or a company that may in the future become insolvent, to be administered in a way that—

  2. maximises the chances of the company, or as much as possible of its business, continuing in existence; or
    1. if it is not possible for the company or its business to continue in existence, results in a better return for the company's creditors and shareholders than would result from an immediate liquidation of the company.

      Compare
      • Corporations Act 2001 s 435A (Aust)
      Notes
      • Section 239A: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).