Plain language law

New Zealand law explained for everyone

Companies Act 1993

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

239ABR: Recovering perishable property

You could also call this:

“Retrieving quickly spoiling goods during company financial difficulties”

You can take back perishable property even if there are rules that usually stop you from doing so. Perishable property is stuff that can go bad quickly, like food.

If you own or rent out perishable property, you’re allowed to take it back or recover it. This is true even if the company is in voluntary administration, which is when a company is having money problems and gets help to try and fix things.

The normal rules that stop people from taking property during voluntary administration don’t apply to perishable property. You can make deals or do things to get your perishable property back without breaking any rules.

Remember, this only applies to perishable property. For other kinds of property, different rules in section 239ABD and section 239Z might still apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321571.

Topics:
Business > Industry rules
Business > Fair trading
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239ABQ: If recovery of property begins before administration, or

“Property recovery started before administration can continue”

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239ABS: Court may limit powers of receiver, etc, in relation to property used by company, or

“Court can stop property owners from taking back items used by companies in financial trouble”

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

239ABRRecovering perishable property

  1. Nothing in section 239ABD prevents a person from taking possession of, or otherwise recovering, perishable property.

  2. Section 239Z does not apply in relation to a transaction or dealing that affects perishable property and is entered into 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.

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