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New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Protection of company's property during administration

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

You could also call this:

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

When a company is under administration, you cannot take back or recover any property that the company was using, occupying, or had in its possession. This applies if you own the property or if you are leasing it to the company. There are only two ways you can get the property back during this time:

  1. You can ask the administrator for written permission to take back the property.

  2. You can ask the court for permission to take back the property.

These rules are in place to help the company continue to operate while it’s being administered. They make sure that important assets aren’t suddenly taken away from the company during this time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321556.

Topics:
Business > Industry rules
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239ABE: Proceeding must not be begun or continued, or

“You can't start or continue legal action against a company in administration”

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

239ABDOwner or lessor must not recover property used by company

  1. During the administration of a company, the owner or lessor of property that was used or occupied by, or is in the possession of, the company must not take possession of the property or otherwise recover it, except—

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

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