Companies Act 1993

Voluntary administration - Rights of secured creditor, owner, or lessor

239ABQ: If recovery of property begins before administration

You could also call this:

“Property recovery started before administration can continue”

If someone starts to take back property from a company before the company goes into administration, they can continue doing so even after the administration begins. This applies if they’ve already taken control of the property or used their power over it.

The rule that usually stops people from taking property during administration doesn’t apply in this case. The person who started taking the property can keep doing what they were doing.

Also, the rule about administrators having to approve dealings with the company’s property doesn’t apply here. The person who started taking the property can make deals or transactions about that property without needing the administrator’s approval.

These rules are part of the Section 239ABD and Section 239Z of the Companies Act. They make sure that if someone has already started to recover property, the administration process doesn’t interrupt them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321570.

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Part 15A Voluntary administration
Rights of secured creditor, owner, or lessor

239ABQIf recovery of property begins before administration

  1. This section applies if, before the beginning of the administration of a company, a receiver or other person, for the purpose of enforcing a right of the owner or lessor of the property to take possession of the property or otherwise recover it,—

  2. entered into possession of, or assumed control of, property used or occupied by, or in the possession of, the company; or
    1. exercised any other power in relation to the property.
      1. Section 239ABD does not prevent the receiver or other person from performing a function, or exercising a power, in relation to the property.

      2. Section 239Z does not apply in relation to a transaction or dealing that affects the property and is entered into in the performance or exercise of a function or power of the receiver or other person.

      Compare
      • Corporations Act 2001 s 441F (Aust)
      Notes
      • Section 239ABQ: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).