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New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Protection of company's property during administration

239ABE: Proceeding must not be begun or continued

You could also call this:

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

During a company’s administration, you cannot start or continue any court proceedings against the company or its property. There are only two exceptions to this rule:

  1. You can proceed if you get written permission from the administrator.

  2. You can also proceed if you get permission from the court. If the court gives you permission, you must follow any conditions the court sets.

This rule helps protect the company while it’s under administration, giving it a chance to sort out its problems without the pressure of legal action.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321557.

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

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

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239ABF: Administrator not liable in damages for refusing consent, or

“Administrators protected from legal action for withholding consent”

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

239ABEProceeding must not be begun or continued

  1. During the administration of a company, a proceeding in a court against the company or in relation to any of its property must not be begun or continued, except—

  2. with the administrator's written consent; or
    1. with the permission of the court and in accordance with the terms that the court imposes.

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