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Companies Act 1993

Voluntary administration - Execution and effect of deed of company arrangement

239ACR: Company's failure to execute deed

You could also call this:

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

If the creditors at the watershed meeting decide that your company should sign a deed of company arrangement, you must do so by the deadline. If you don’t sign the deed in time, the administrator has to take action. They must either ask for a liquidator to be appointed to your company, or if your company is already in liquidation, they must ask for the liquidation to start again. This applies even though section 239E(2)(e) says something different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321600.

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

239ACRCompany's failure to execute deed

  1. If the creditors at the watershed meeting have passed a resolution that the company execute a deed of company arrangement, and the company fails to do so within the deadline for execution, then, notwithstanding section 239E(2)(e),—

  2. the administrator must apply for the appointment of a liquidator to the company; or
    1. if the company is already in liquidation, the administrator must apply for the liquidation to resume.

      Notes
      • Section 239ACR: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).