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Companies Act 1993

Voluntary administration - Resignation and removal of administrator

239T: Creditors must consider appointment of replacement administrator

You could also call this:

“Creditors decide whether to keep or replace the new administrator at a meeting”

When a new administrator is appointed to replace the original one, they need to arrange a meeting with the company’s creditors. This meeting is for the creditors to decide if they want to keep the new administrator or choose someone else instead. The new administrator must set up this meeting within 5 working days of when they were appointed.

To let the creditors know about the meeting, the new administrator needs to do two things. First, they must send a written notice to as many of the company’s creditors as they can reasonably reach. Second, they need to advertise the meeting publicly. The new administrator must do these things at least 2 working days before the meeting happens.

It’s important to note that this process doesn’t apply if the new administrator was chosen by a court or if the creditors already picked them in a previous meeting under section 239R(1)(b).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321514.

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Part 15A Voluntary administration
Resignation and removal of administrator

239TCreditors must consider appointment of replacement administrator

  1. A replacement administrator, unless appointed by the court or by the creditors under section 239R(1)(b), must convene a meeting of the creditors at which the creditors may vote to remove the replacement administrator and appoint another person in his or her place.

  2. The meeting must be held not more than 5 working days after the date on which the replacement administrator is appointed.

  3. The replacement administrator must convene the meeting by—

  4. giving written notice of the meeting to as many of the company's creditors as reasonably practicable; and
    1. advertising the meeting in accordance with section 3(1)(a).

      1. The replacement administrator must take the steps in subsection (3) not less than 2 working days before the meeting.

      Compare
      • Corporations Act 2001 s 449C(4), (5) (Aust)
      Notes
      • Section 239T: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
      • Section 239T(3)(b): amended, on , by section 58 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).