Plain language law

New Zealand law explained for everyone

239AW: Directors must attend watershed meeting
or “Directors must go to important meeting about company's future, with some exceptions”

You could also call this:

“Sharing information about pre-arranged voting agreements before creditor meetings”

Before a meeting where creditors vote on resolutions, the administrator and the directors of the company under administration need to tell everyone about any voting arrangements they know about. These are arrangements that make some creditors vote a certain way on the resolutions that will or might be voted on at the meeting. They have to share this information with all the people at the meeting before any voting happens. This rule helps make sure everyone knows if some votes might already be decided because of special arrangements.

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Next up: 239AY: Court may order that pooled property owners are separate class

or “Court can group pooled property owners separately for voting on company rescue plans”

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Companies Act 1993
Voluntary administration
239AX: Disclosure of voting arrangements

Part 15A Voluntary administration
Watershed meeting

239AXDisclosure of voting arrangements

The administrator and the directors of the company under administration must, before the meeting votes on any resolution, inform the meeting of any voting arrangement of which the administrator or a director, as the case may be, is aware that requires 1 or more creditors to vote in a particular way on any resolution that will or may be voted on by the meeting.

Notes