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Companies Act 1993

Voluntary administration - Execution and effect of deed of company arrangement

239ACU: Person bound by deed must not take steps to liquidate, etc

You could also call this:

“Deed-bound people can't liquidate or sue company during arrangement”

When a company is under a deed of company arrangement, you can’t do certain things while the deed is in effect. You’re not allowed to ask the court to appoint a liquidator for the company. You also can’t start or continue any legal actions against the company or its property without the court’s permission. This includes any enforcement actions against the company’s property.

In this case, ‘property’ means more than just things the company owns. It also includes property the company is using, occupying, or has in its possession.

These rules apply to anyone who is bound by the deed of company arrangement. They’re in place to protect the company while it’s trying to sort out its financial problems.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321603.

Topics:
Business > Industry rules
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239ACV: Court may restrain creditors and others from enforcing charge or recovering property, or

“Court can temporarily stop actions against company property to help arrangement succeed”

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

239ACUPerson bound by deed must not take steps to liquidate, etc

  1. A person who is bound by a deed of company arrangement must not, while the deed is in force,—

  2. apply, or continue with an application, to the court for the appointment of a liquidator of the company:
    1. except with the court's permission, begin or continue a proceeding against the company or in relation to any of its property:
      1. except with the court's permission, begin or continue an enforcement process against the company's property.

        1. In this section, property includes property used or occupied by the company, or in its possession.

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