Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Appointment of administrator

239K: Appointment by secured creditor

You could also call this:

“A secured creditor can appoint an administrator when their charge becomes enforceable”

If you have a charge (a type of security) over all or most of a company’s property, you can appoint an administrator when your charge becomes enforceable and remains so. To do this, you need to write down the appointment and include the date it happens.

It’s important to know that you can’t appoint an administrator if the company is already being liquidated. This means if the company is in the process of being closed down and its assets are being sold, you can’t step in and appoint an administrator.

Remember, this only applies if you have a charge over the company’s property and if that charge is enforceable. If you’re unsure about your rights or the company’s status, it’s a good idea to ask for help from someone who knows about company law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321504.

Topics:
Business > Industry rules
Business > Fair trading
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239J: Appointment by liquidator or interim liquidator, or

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

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239L: Appointment by court, or

“Court can appoint an administrator for a company in certain situations”

Part 15A Voluntary administration
Appointment of administrator

239KAppointment by secured creditor

  1. A person who holds a charge over the whole, or substantially the whole, of a company's property may appoint an administrator if the charge has become, and is still, enforceable.

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

  3. A secured creditor must not appoint an administrator if the company is already in liquidation.

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