Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Effect of appointment of administrator

239AC: Effect on liquidation

You could also call this:

“Pausing liquidation when an administrator is appointed”

When an administrator is appointed to a company that’s already in liquidation, it pauses the liquidation process. This means the liquidator can’t act on behalf of the company while the administrator is in charge. However, the liquidator isn’t removed from their job completely.

If the liquidator needs to, they can ask the court for orders about the paused liquidation. This might be necessary if there are things they need to sort out.

It’s important to know that when we talk about a ‘liquidator’ here, we mean anyone who was appointed as a liquidator or interim liquidator before the administration started. An interim liquidator is someone who looks after the company temporarily before a full liquidator is appointed.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321524.

Topics:
Business > Industry rules
Business > Fair trading
Previous

239AB: Effect on transfer of shares, or

“Share transfers and shareholder changes are restricted during company administration”

Next

239AD: Effect on receivership, or

“How a receiver's role continues when an administrator is appointed”

Part 15A Voluntary administration
Effect of appointment of administrator

239ACEffect on liquidation

  1. The appointment of an administrator to a company in liquidation suspends the liquidation, including the powers of the liquidator to act on the company's behalf, but does not remove the liquidator from office.

  2. The liquidator may apply to the court for any orders that may be necessary in relation to the suspension of the liquidation.

  3. In this section, liquidator includes a liquidator or interim liquidator appointed before the administration began.

Notes
  • Section 239AC: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).