Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Execution and effect of deed of company arrangement

239ACS: Who is bound by deed

You could also call this:

“Who must follow a company's deed of arrangement”

A deed of company arrangement is a legal document that affects several people and groups. When a company enters voluntary administration, this deed becomes binding for certain parties.

You need to know that the deed binds the company’s creditors, which are people or businesses the company owes money to. However, there are some specific rules about how it affects creditors, which you can find in section 239ACT.

The deed also binds the company itself. This means the company must follow what the deed says.

Additionally, the deed binds the company’s directors, officers, and shareholders. These are the people who run the company, work in important roles, or own parts of the company.

Lastly, the deed administrator is also bound by the deed. This is the person responsible for overseeing the voluntary administration process.

All these people and groups must follow what the deed of company arrangement says. It’s a legal requirement for them to do so.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321601.

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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”

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239ACT: Extent to which deed binds creditors, or

“How a deed of arrangement affects people the company owes money to”

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

239ACSWho is bound by deed

  1. A deed of company arrangement binds—

  2. the company's creditors, to the extent provided by section 239ACT; and
    1. the company; and
      1. the company's directors, officers, and shareholders; and
        1. the deed administrator.

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