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Companies Act 1993

Voluntary administration - Creditors' meetings generally

239AK: Conduct of creditors' meetings

You could also call this:

“How creditors' meetings are run and decisions are made”

When you have creditors’ meetings under this part of the law, some rules apply as if the administrator was the liquidator. These rules are found in Schedule 5 of the Companies Act 1993. They include clause 4 (with some exceptions) and clauses 6 to 11.

For a resolution to pass at these meetings, you need a majority of the creditors to agree. This majority must represent at least 75% of the value of the creditors’ claims. Creditors can vote in person, by proxy, or by post.

The administrator, or someone they choose, will run the meeting. If there’s a tie in voting, the person running the meeting gets to make the final decision.

Sometimes, it’s hard to know exactly how much money a creditor is owed. In these cases, the administrator can make a guess about the amount. If you’re a creditor and you don’t agree with the administrator’s guess, you can ask the court to decide. The court will then set the amount as it thinks is right.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321534.

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Part 15A Voluntary administration
Creditors' meetings generally

239AKConduct of creditors' meetings

  1. The following clauses of Schedule 5 apply to creditors' meetings called under this Part as if references to the liquidator were references to the administrator:

  2. subject to section 239AZ, clause 4; and
    1. clauses 6 to 11.

      1. At any meeting of creditors or class of creditors held under this Part, a resolution is adopted if a majority in number representing 75% in value of the creditors or class of creditors voting in person, or by proxy vote or by postal vote, vote in favour of the resolution.

      2. The administrator or the administrator's nominee must chair a creditors' meeting, and has a casting vote.

      3. For the purposes of voting at a creditors' meeting, the administrator may estimate the amount of a creditor's claim that is for any reason uncertain.

      4. On the application of the administrator, or of a creditor who is aggrieved by an estimate made by the administrator, the court must determine the amount of the claim as it sees fit.

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