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Companies Act 1993

Voluntary administration - Execution and effect of deed of company arrangement

239ACQ: Creditor must not act inconsistently with deed, etc, before execution

You could also call this:

“Creditors must follow proposed arrangement rules before the deal is signed”

The ‘interim period’ is the time between when people at a meeting decide the company should make a deal (called a deed of company arrangement) and when the deal is actually signed. This period ends when either the company and the person in charge of the deal (called the deed administrator) sign it, or when the time to sign it runs out.

During this interim period, if you would normally have to follow the rules in the deal, you need to act as if the deal is already in place. This means you can’t do anything that goes against what the deal says, unless a court gives you special permission. You also can’t do certain things that another part of the law (Section 239ACU) says you’re not allowed to do.

These rules are there to make sure everyone acts fairly while the deal is being finalised, even if it hasn’t been signed yet.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321599.

Topics:
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239ACP: Procedure if deed not fully approved at watershed meeting, or

“What happens when a deed of company arrangement isn't fully approved at the watershed meeting”

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239ACR: Company's failure to execute deed, or

“What happens if a company doesn't sign a deed of company arrangement on time”

Part 15A Voluntary administration
Execution and effect of deed of company arrangement

239ACQCreditor must not act inconsistently with deed, etc, before execution

  1. In this section, interim period means the period between a resolution passed at the watershed meeting that the company execute a deed of company arrangement and the sooner of—

  2. execution of the deed by the company and the deed administrator; or
    1. expiry of the period during which the deed may be executed.

      1. In the interim period, in so far as a person would be bound by the deed if it had already been executed, that person—

      2. must not do anything inconsistent with the deed, except with the permission of the court; and
        1. must not take a step that is prohibited under section 239ACU.

          Compare
          • Corporations Act 2001 s 444C (Aust)
          Notes
          • Section 239ACQ: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).