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Companies Act 1993

Voluntary administration - Interface with liquidation

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

You could also call this:

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

If a company is in administration, the court can’t appoint an interim liquidator if it thinks it’s better for the company’s creditors to keep the company in administration. This means that if staying in administration is good for the people the company owes money to, the court won’t put someone in charge to shut down the company. The court will look at what’s best for the creditors before making a decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321577.

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239ABV: Court may adjourn application for liquidation, or

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

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239ABX: Effect of appointment of liquidator, or

“Appointing a liquidator ends the administration and starts winding up the company”

Part 15A Voluntary administration
Interface with liquidation

239ABWCourt must not appoint interim liquidator if administration in creditors' interests

  1. The court must not appoint an interim 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 have an interim liquidator appointed.

Compare
  • Corporations Act 2001 s 440A(3) (Aust)
Notes
  • Section 239ABW: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).