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Companies Act 1993

Voluntary administration - Interface with liquidation

239ABY: Former administrator is default liquidator

You could also call this:

“The company's former administrator usually becomes the liquidator if no one else is chosen or available”

When a company in administration needs a liquidator, the person who was the administrator becomes the liquidator by default in certain situations. This happens if the creditors don’t choose someone, or if the person they choose can’t do the job. The administrator becomes the liquidator if the chosen person isn’t allowed to be a liquidator, hasn’t met the requirements to be one, or isn’t a licensed insolvency practitioner allowed to work with that company. The administrator also becomes the liquidator if the chosen person can’t or doesn’t want to do the job for any other reason.

However, if the former administrator isn’t allowed to be a liquidator or isn’t a licensed insolvency practitioner allowed to work with that company, they must choose someone else to be the liquidator. This rule makes sure that the person handling the company’s liquidation is qualified and allowed to do the job.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321579.

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239ABX: Effect of appointment of liquidator, or

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

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239ABYA: Provision of information and assistance to liquidator, or

“Giving information and help to the liquidator after being an administrator”

Part 15A Voluntary administration
Interface with liquidation

239ABYFormer administrator is default liquidator

  1. In the case of the appointment of a liquidator to a company in administration by the creditors, the former administrator is the liquidator if—

  2. the creditors' resolution does not nominate a person for appointment; or
    1. the person nominated—
      1. is disqualified from acting as a liquidator under section 280(2); or
        1. has not satisfied the requirements of section 282; or
          1. is not a licensed insolvency practitioner who is permitted to act as a liquidator of the company in accordance with the Insolvency Practitioners Regulation Act 2019; or
          2. the person nominated is for any other reason unable or unwilling to act as liquidator.

            1. However, the former administrator must appoint another person as the liquidator if the former administrator is disqualified from acting as a liquidator or is not a licensed insolvency practitioner who is permitted to act as a liquidator of the company in accordance with the Insolvency Practitioners Regulation Act 2019.

            Notes
            • Section 239ABY: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
            • Section 239ABY(1)(b): replaced, on , by section 16(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
            • Section 239ABY(2): inserted, on , by section 16(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).