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Companies Act 1993

Voluntary administration - Interface with liquidation

239ABV: Court may adjourn application for liquidation

You could also call this:

“Court can delay decision on closing a company in administration”

If someone asks the court to appoint a liquidator for a company that’s in administration, the court can decide to delay making a decision. The court can do this if it thinks it’s better for the people the company owes money to (the creditors) if the company stays in administration instead of being closed down. The court will only do this if it believes it’s in the best interests of the creditors. If you want to know more about how someone can ask for a liquidator to be appointed, you can look at section 241(2)(c).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321576.

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Part 15A Voluntary administration
Interface with liquidation

239ABVCourt may adjourn application for liquidation

  1. The court may adjourn an application under section 241(2)(c) for the appointment of a liquidator of a company in administration if the court is satisfied that it is in the interests of the company's creditors for the company to continue in administration rather than be placed in liquidation.

Compare
  • Corporations Act 2001 s 440A(2) (Aust)
Notes
  • Section 239ABV: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).