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Companies Act 1993

Voluntary administration - Preliminary

239E: When administration ends

You could also call this:

“Ways a company's voluntary administration can end”

When a company is in voluntary administration, there are several ways the administration can end. The main ways are:

You and the administrator sign a deed of company arrangement. This is an agreement about how your company will operate.

Your company’s people who are owed money (creditors) decide the administration should end.

Your creditors choose someone to close down the company (a liquidator) at a special meeting.

There are also other ways the administration can end:

A court can order the end of administration. This might happen if the court thinks your company can pay its debts.

If a special meeting isn’t held when it should be, and no one asks for more time, the administration ends.

If someone asks for more time to hold the special meeting, but this isn’t granted, the administration ends.

If the special meeting happens, but people don’t agree to sign a deed of company arrangement, the administration ends after the meeting.

If your company doesn’t sign the deed of company arrangement in time, as set out in section 239ACO or 239ACP, the administration ends.

If a court chooses someone to close down your company (a liquidator or interim liquidator), the administration ends right away.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321197.

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239D: When administration begins, or

“When a company's voluntary administration process starts”

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239EA: Voluntary administration of licensed insurers, or

“Special rules for insurance companies in financial trouble”

Part 15A Voluntary administration
Preliminary

239EWhen administration ends

  1. The administration of a company ends when—

  2. a deed of company arrangement is executed by both the company and the deed administrator; or
    1. the company's creditors resolve that the administration should end; or
      1. the company's creditors appoint a liquidator by a resolution passed at the watershed meeting.

        1. However, the administration of a company may also end in the following instances:

        2. if the court orders that the administration end, for example because the court is satisfied that the company is solvent, the administration ends on the date specified in the order or, if no date is specified, when the order is made; or
          1. if the convening period expires without the watershed meeting having been convened or without an application having been made to extend the convening period, the administration ends at the end of that period; or
            1. if an application has been made to extend the convening period, which has expired after the application was made, the administration ends when the application is refused or otherwise disposed of without the convening period being extended; or
              1. if the watershed meeting ends without a resolution that the company execute a deed of company arrangement, the administration ends at the end of that meeting; or
                1. if the company fails to execute a proposed deed of company arrangement within the time allowed by section 239ACO or 239ACP, the administration ends when that time expires; or
                  1. if the court appoints a liquidator or an interim liquidator, the administration ends at the time when the order is made.

                    Compare
                    • Corporations Act 2001 s 435C(2), (3) (Aust)
                    Notes
                    • Section 239E: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).