Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Preliminary

239C: Interpretation of other terms

You could also call this:

“Explaining key terms used in the Companies Act 1993”

In this part of the law, unless the meaning is different based on how it’s used, certain words have specific meanings.

When the law talks about a ‘company’, it means both New Zealand companies and overseas companies.

The ‘convening period’ is explained in section 239AT(2).

A ‘creditor’ is someone who the company owes money to. This includes people who could claim money in a liquidation as described in section 303, and also includes secured creditors (people who have a legal right over some of the company’s property as security for a debt).

An ‘enforcement process’ for property means either taking the property to pay a debt, or any other court or sheriff-led process to enforce rights over that property.

A company is ‘insolvent’ when it can’t pay its debts.

A ‘sheriff’ is someone whose job is to carry out a court order or other legal process to enforce a decision.

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 It might be out of date or be missing some parts.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=DLM321195.

Topics:
Business > Industry rules
Business > Fair trading
Previous

239B: Interpretation of some key terms, or

“Definitions of key terms used in company administration”

Next

239D: When administration begins, or

“When a company's voluntary administration process starts”

Part 15A Voluntary administration
Preliminary

239CInterpretation of other terms

  1. In this Part, unless the context otherwise requires,—

    company includes an overseas company

      convening period has the meaning given to it in section 239AT(2)

        creditor includes—

        1. a person who, in a liquidation, would be entitled to claim in accordance with section 303 that a debt is owing to that person by the company; and
          1. a secured creditor

            enforcement process, in relation to property, means—

            1. execution against that property; or
              1. any other enforcement process in relation to that property that involves a court or a sheriff

                insolvent means, in relation to a company, that the company is unable to pay its debts

                  sheriff includes a person charged with the execution of a writ or other enforcement process.

                  Notes
                  • Section 239C: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).