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Companies Act 1993

Voluntary administration - Watershed meeting

239AU: Notice of watershed meeting

You could also call this:

“Notifying creditors about the watershed meeting and providing key information”

You need to know about the notice for a watershed meeting. The administrator must tell as many of the company’s creditors as possible about the meeting in writing. They also have to advertise the meeting as required by law. The administrator must do this at least 5 working days before the meeting happens.

When the administrator sends the notice to creditors, they must include some important documents. These are:

An up-to-date statement about the administrator’s interests in the company. This can be a new statement or an update to previous ones.

A report about the company’s business, property, affairs, and money situation. The report should also include any other important information that creditors need to make decisions at the meeting.

The administrator’s opinion on what they think is best for the creditors. They need to say if they think the creditors should agree to a deed of company arrangement, end the administration, or put the company into liquidation. They must explain why they think this.

If there’s a plan for a deed of company arrangement, the administrator must include the details of this plan.

The administrator must follow these rules to make sure all creditors have the information they need before the watershed meeting.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321546.

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Part 15A Voluntary administration
Watershed meeting

239AUNotice of watershed meeting

  1. The administrator must convene the watershed meeting by—

  2. 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 administrator must take the steps in subsection (1) not less than 5 working days before the meeting.

      2. The following documents must accompany the notice of the watershed meeting that is sent to the company's creditors:

      3. an updated interests statement that complies with section 239APA; and
        1. a report by the administrator about—
          1. the company's business, property, affairs, and financial circumstances; and
            1. any other matter material to the creditors' decisions to be considered at the meeting; and
            2. a statement setting out the administrator's opinion, with reasons for that opinion, about each of the following matters:
              1. whether it would be in the creditors' interests for the company to execute a deed of company arrangement:
                1. whether it would be in the creditors' interests for the administration to end:
                  1. whether it would be in the creditors' interests for the company to be placed in liquidation; and
                  2. if a deed of company arrangement is proposed, a statement setting out the details of the proposed deed.

                    1. The updated interests statement may be in the form of a statement to be read in conjunction with previous interests statements and updates.

                    Compare
                    • Corporations Act 2001 s 439A(3), (4) (Aust)
                    Notes
                    • Section 239AU: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
                    • Section 239AU(1)(b): amended, on , by section 15(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                    • Section 239AU(3)(aa): inserted, on , by section 15(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                    • Section 239AU(4): inserted, on , by section 15(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).