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Companies Act 1993

Voluntary administration - Deed administrator

239ACE: What deed administrator must do before appointment

You could also call this:

“Deed administrator's requirements before taking on the role”

Before someone can become a deed administrator for a company, they need to do a few important things. You need to agree in writing to take on the job, and this agreement must still be valid when the company signs its arrangement deed. You also need to write down that you’re allowed to do this job. This means you have to be a licensed insolvency practitioner, and the Insolvency Practitioners Regulation Act 2019 must say it’s okay for you to be a deed administrator for this company. You also can’t be someone who’s not allowed to do the job according to section 239ACD(2).

You have to show these written agreements at a special meeting called a watershed meeting. If the meeting doesn’t happen, you need to send these papers to the people the company owes money to, along with a draft of the deed. You also need to give them a statement about any interests you have that might affect your work, following the rules in section 239ACEA.

If you don’t do these things properly, you might get in trouble with the law. The punishment for this is explained in section 373(2). However, even if you make a mistake with these steps, the work you do as a deed administrator will still count.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321586.

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“Requirements for becoming a deed administrator for a company”

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Part 15A Voluntary administration
Deed administrator

239ACEWhat deed administrator must do before appointment

  1. A person must not be appointed as a deed administrator of a company unless the person has—

  2. consented in writing and has not withdrawn the consent at the time when the deed of company arrangement is executed; and
    1. certified in writing that the person—
      1. is a licensed insolvency practitioner; and
        1. is permitted to act as a deed administrator of the company under the Insolvency Practitioners Regulation Act 2019; and
          1. is not disqualified from appointment under section 239ACD(2); and
          2. tabled at the watershed meeting (or, if section 239ACP applies, circulated to creditors with the draft deed under that section)—
            1. the written consent and certificate required under paragraphs (a) and (b); and
              1. an interests statement that complies with section 239ACEA.

              2. A person commits an offence, and is liable on conviction to the penalty set out in section 373(2), if—

              3. the person, with their consent, is appointed as a deed administrator despite failing to certify the matters set out in subsection (1)(b); or
                1. the person fails to comply with subsection (1)(c).

                  1. The acts of a person as a deed administrator are valid even if the person does not meet the requirements of section 239ACD(1), fails to certify the matters set out in subsection (1)(b), or fails to comply with subsection (1)(c).

                  Notes
                  • Section 239ACE: replaced, on , by section 19 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).