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Companies Act 1993

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

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

You could also call this:

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

This law talks about what happens when someone wants to take back property that a company is using, and the company is in administration. Administration is when someone is appointed to help a company that’s in financial trouble.

If you own or lease property to a company, and you want to take it back, you might try to take control of it. But if the company is in administration when you do this, or goes into administration later, the administrator can ask the court to stop you.

The court can tell you not to do certain things with the property, except what the court allows. The court will only do this if it thinks the administrator’s plans will protect your interests as the owner or lessor.

The court’s order only applies during the administration period. It overrides some other rules about what receivers and others can do with the property.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321572.

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“Retrieving quickly spoiling goods during company financial difficulties”

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

239ABSCourt may limit powers of receiver, etc, in relation to property used by company

  1. This section applies if,—

  2. for the purpose of enforcing a right of the owner or lessor of property used or occupied by, or in the possession of, a company to take possession of the property or otherwise recover it, a person—
    1. enters into possession, or assumes control, of the property; or
      1. exercises any other power in relation to the property; and
      2. the company is in administration when the person does so, or an administrator is later appointed to the company.

        1. On an application by the administrator, the court may order the person not to perform specified functions, or exercise specified powers, in relation to the property, except as permitted by the order.

        2. The court may make an order only if satisfied that what the administrator proposes to do during the administration will adequately protect the interests of the owner or lessor.

        3. An order—

        4. may be made only, and has effect only, during the administration; and
          1. has effect despite sections 239ABQ and 239ABR.

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