Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Watershed meeting

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

You could also call this:

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

You can ask the court to treat owners of pooled property as a separate group. Pooled property owners are people who own or lease property that’s combined for use in a company’s business when that company is in administration.

If the court agrees to this, and if most of the pooled property owners (75% by value) vote for a plan to save the company, then all pooled property owners must follow this plan. This is true even if some of them didn’t vote for it.

The pooled property owners don’t need to have a separate meeting to vote. They can vote with all the other people the company owes money to.

This rule applies even if other parts of the law (section 239ACS and section 239ACT) say something different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321550.

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

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“Postponing the watershed meeting for up to 30 working days or longer with court approval”

Part 15A Voluntary administration
Watershed meeting

239AYCourt may order that pooled property owners are separate class

  1. On the application of the administrator, the court may order that, for the limited purposes of this section only, pooled property owners are a separate class.

  2. In this section—

    pooled property owners means all the owners or lessors of property that is pooled in a single enterprise forming part of the business of a company in administration

      requisite majority means a majority in number representing 75% in value of the pooled property owners voting in person or by proxy vote or by postal vote

        resolution means a resolution that the company in administration execute the deed of company arrangement specified in the resolution.

        1. Each pooled property owner is bound by the deed of company arrangement as if that person had voted in favour of the resolution at the watershed meeting if—

        2. the court has ordered that the pooled property owners are a separate class; and
          1. at the watershed meeting the creditors (including the pooled property owners) approved the resolution; and
            1. the requisite majority of the pooled property owners were included in the creditors who voted in favour of the resolution.

              1. It is not necessary that a separate meeting of the pooled property owners be held for the purpose of voting on the resolution.

              2. Subsection (3) applies no matter what sections 239ACS and 239ACT say.

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