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239K: Appointment by secured creditor
or “A secured creditor can appoint an administrator when their charge becomes enforceable”
You could also call this:

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

You can ask the court to appoint an administrator for a company. If you’re a creditor, liquidator, the Financial Markets Authority (if the company deals with financial markets), or the Registrar, you can make this request.

The court might agree to appoint an administrator if:

  1. They think the company can’t pay its debts, and having an administrator would be better for the company’s creditors and shareholders than immediately shutting down the company.
  2. They believe it’s the fair and right thing to do.

For insurance companies, the Reserve Bank of New Zealand can also ask the court to appoint an administrator. The court might do this if:

  1. The reasons mentioned above apply.
  2. The insurance company isn’t keeping enough money in reserve as required by the Insurance (Prudential Supervision) Act 2010.

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Next up: 239M: Appointment must not be revoked

or “You can't cancel an administrator's appointment, except by court order or creditor decision”
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Part 15A Voluntary administration
Appointment of administrator

239LAppointment by court

  1. The court may appoint an administrator on the application of a creditor, the liquidator (if the company is in liquidation), the FMA (if the company is a financial markets participant), or the Registrar.

  2. The court may appoint an administrator if—

  3. the court is satisfied that the company is or may become insolvent and that an administration is likely to result in a better return for the company's creditors and shareholders than would result from an immediate liquidation of the company; or
    1. it is just and equitable to do so.

      1. In the case of a licensed insurer, the court may appoint an administrator on the application of the Reserve Bank of New Zealand or a person referred to in subsection (1) if—

      2. subsection (2)(a) or (b) apply; or
        1. the insurer is failing to maintain a solvency margin (within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010).

          Notes
          • Section 239L: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
          • Section 239L(1): amended, on , by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
          • Section 239L(3): inserted, on , by section 241(2) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).