Plain language law

New Zealand law explained for everyone

239ABU: When liquidator may be appointed to company in administration
or “How a company in administration can get a liquidator”

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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Next up: 239ABW: Court must not appoint interim liquidator if administration in creditors' interests

or “Court won't appoint temporary company closer if staying open is better for people owed money”

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Companies Act 1993
Voluntary administration
239ABV: Court may adjourn application for liquidation

Part 15A Voluntary administration
Interface with liquidation

239ABVCourt may adjourn application for liquidation

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.

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