Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Protection of company's property during administration

239ABC: Charge unenforceable

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 It might be out of date or be missing some parts.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.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321555.

Topics:

Business > Industry rules

Business > Fair trading

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”

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

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

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

239ABCCharge unenforceable

Subject to subpart 10, a person must not, during the administration of a company, enforce a charge over the property of the company, except—
with the administrator's written consent; or
with the permission of the court.

Compare

Corporations Act 2001 s 440B (Aust)

Notes

Section 239ABC: inserted, on 1 November 2007, by section 6 of the Companies Amendment Act 2006 (2006 No 56).