Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
239ABB: What happens if proposed deed not fully approved at watershed meeting
or “Creditors can review the draft deed if full agreement isn't reached at the watershed meeting”
You could also call this:

“Charges on company property can't be enforced during administration, with limited exceptions”

When a company is in administration, you cannot enforce a charge over the company’s property. There are only two exceptions to this rule. You can enforce a charge if you have the written consent of the administrator. You can also enforce a charge if you get permission from the court. This rule is subject to subpart 10 of the Companies Act 1993.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: 239ABD: Owner or lessor must not recover property used by company

or “Company property can't be taken back during administration”
Next

Part 15A Voluntary administration
Protection of company's property during administration

239ABCCharge unenforceable

  1. Subject to subpart 10, a person must not, during the administration of a company, enforce a charge over the property of the company, except—

  2. with the administrator's written consent; or
    1. with the permission of the court.

      Compare
      • Corporations Act 2001 s 440B (Aust)
      Notes
      • Section 239ABC: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).