Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Appointment of administrator

239M: Appointment must not be revoked

You could also call this:

“You can't cancel an administrator's appointment, except by court order or creditor decision”

When someone is chosen to be an administrator for a company, you can’t take back that choice. This means once an administrator is appointed, their appointment can’t be cancelled or undone.

However, there are two exceptions to this rule. The court can remove an administrator from their position. Also, the people or businesses that the company owes money to (called creditors) can remove the administrator.

Apart from these two situations, the appointment of an administrator must stay in place and can’t be changed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321506.

Topics:
Business > Industry rules
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239L: Appointment by court, or

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

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239N: Appointment of 2 or more administrators, or

“How multiple administrators can be appointed and work together”

Part 15A Voluntary administration
Appointment of administrator

239MAppointment must not be revoked

  1. The appointment of an administrator must not be revoked.

  2. This does not apply to removal by the court or by the creditors.

Compare
  • Corporations Act 2001 s 449A (Aust)
Notes
  • Section 239M: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).