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Companies Act 1993

Voluntary administration - Administrator's liability and indemnity for debts of administration

239ADH: Administrator liable for general debts

You could also call this:

“Administrator must pay for debts incurred while managing the company”

When someone is in charge of managing a company during a special process called voluntary administration, they’re called an administrator. As the administrator, you are responsible for any debts you create while doing your job. This includes debts for:

  • Money you borrow to keep the company running
  • Services you get for the company
  • Things you buy for the company
  • Any property you rent or use for the company

Even if you make an agreement saying you’re not responsible for these debts, you still are. However, you can still try to get the money back from the company or someone else if you need to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321619.

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Part 15A Voluntary administration
Administrator's liability and indemnity for debts of administration

239ADHAdministrator liable for general debts

  1. The administrator is liable for debts that he or she incurs in the performance or exercise, or purported performance or exercise, of any of his or her functions and powers as administrator, for—

  2. the purpose of funding the company; or
    1. any services rendered; or
      1. any goods bought; or
        1. any property hired, leased, or occupied.

          1. Subsection (1) has effect despite any agreement to the contrary, but without prejudice to the administrator's rights against the company or anyone else.

          Compare
          • Corporations Act 2001 s 443A (Aust)
          Notes
          • Section 239ADH: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).