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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.

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

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Part 15AVoluntary 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).