Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Appointment of administrator

239I: Appointment by company

You could also call this:

“How a company can appoint an administrator when it's in financial trouble”

You can appoint an administrator for your company if your board decides the company can’t pay its debts or might not be able to soon. To do this, most of the directors need to agree that the company should have an administrator.

When you appoint an administrator, you need to write it down and say when it happened. You can’t appoint an administrator if your company is already being closed down.

If someone has asked the court to close down your company, you only have 10 working days to appoint an administrator after you find out about it. But this rule doesn’t apply once the court has made a final decision about closing the company.

Remember, you can’t appoint an administrator if your company is already being closed down.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321502.

Topics:
Business > Industry rules
Business > Fair trading
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239H: Who may appoint administrator, or

“Who can appoint an administrator for a company”

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239J: Appointment by liquidator or interim liquidator, or

“Liquidator or interim liquidator can appoint an administrator for a struggling company”

Part 15A Voluntary administration
Appointment of administrator

239IAppointment by company

  1. A company may appoint an administrator if the board of the company has resolved that,—

  2. in the opinion of the directors voting for the resolution, the company is insolvent or may become insolvent; and
    1. an administrator of the company should be appointed.

      1. The appointment must be in writing and must state the date of the appointment.

      2. The company must not appoint an administrator if the company is already in liquidation.

      3. If an application has been filed for the appointment of a liquidator of the company by the court under section 241(2)(c), the company may only appoint an administrator if the administrator is appointed within 10 working days after service on the company of the application.

      4. Subsection (4) does not apply once the application has been finally disposed of.

      Compare
      • Corporations Act 2001 s 436A (Aust)
      Notes
      • Section 239I: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).