Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Watershed meeting

239AS: What watershed meeting is

You could also call this:

“A watershed meeting is where creditors decide the company's future”

The watershed meeting is an important gathering where people who are owed money by a company (called creditors) come together. The person in charge of helping the company during this time (called the administrator) organises this meeting. At this meeting, you and the other creditors will make big decisions about what will happen to the company in the future. One of the main things you’ll decide is whether the company and a special person called the deed administrator should create a plan (called a deed of company arrangement) to help the company move forward.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321544.

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“Administrator must organise a watershed meeting within 20 working days”

Part 15A Voluntary administration
Watershed meeting

239ASWhat watershed meeting is

  1. The watershed meeting is the meeting of creditors called by the administrator to decide the future of the company and, in particular, whether the company and the deed administrator should execute a deed of company arrangement.

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