Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Deed administrator

239ACL: Deed administrator may sell shares in company

You could also call this:

“Deed administrator can sell company shares with consent or court approval”

The deed administrator can sell existing shares in the company. This can happen in two ways. First, if the shareholder agrees to it. Second, if the shareholder doesn’t agree, the deed administrator can ask the court for permission to sell the shares.

If the deed administrator asks the court for permission, some people can oppose this request. These people include the shareholder involved, any creditor of the company, the Financial Markets Authority (if the company is involved in financial markets), or the Registrar.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321593.

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Part 15A Voluntary administration
Deed administrator

239ACLDeed administrator may sell shares in company

  1. The deed administrator may sell existing shares in the company—

  2. with the consent of the shareholder in question; or
    1. if the shareholder does not consent, with the permission of the court given on an application of the deed administrator.

      1. The shareholder concerned, a creditor, the FMA (if the company is a financial markets participant), or the Registrar may oppose an application by the administrator for the court's permission.

      Notes
      • Section 239ACL: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
      • Section 239ACL(2): amended, on , by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).