Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - First creditors' meeting to appoint creditors' committee

239AQ: Functions of creditors' committee

You could also call this:

“What a creditors' committee does when a company is being managed by an administrator”

When a company is in administration, a creditors’ committee has two main jobs. First, you can talk with the administrator about things related to the administration. Second, you can get reports from the administrator and think about them.

You can’t tell the administrator what to do if you’re on the creditors’ committee. But the administrator has to tell you about things happening in the administration when you ask for information in a reasonable way.

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 It might be out of date or be missing some parts.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=DLM321541.

Topics:

Business > Industry rules

Business > Fair trading

239APA: Requirements for interests statement, or

“Rules for disclosing conflicts of interest when becoming a company administrator”

239AR: Membership of creditors' committee, or

“Who can be on a creditors' committee”

Part 15A Voluntary administration
First creditors' meeting to appoint creditors' committee

239AQFunctions of creditors' committee

The functions of the creditors' committee of a company in administration are—
to consult with the administrator about matters relating to the administration; and
to receive and consider reports by the administrator.

The committee must not give directions to the administrator, but the administrator must report to the committee about matters relating to the administration as and when the committee reasonably requires.

Compare

Corporations Act 2001 s 436F (Aust)

Notes

Section 239AQ: inserted, on 1 November 2007, by section 6 of the Companies Amendment Act 2006 (2006 No 56).