Plain language law

New Zealand law explained for everyone

239ADL: Administrator's indemnity
or “Protection from personal liability for company administrators”

You could also call this:

“Administrator's repayment rights come before most other company debts”

If you’re an administrator of a company, you have the right to be paid back for any costs or expenses you have while doing your job. This right is called ‘indemnity’. Your right to be paid back is more important than most other debts the company owes. It comes before any unsecured debts, which are debts that aren’t backed by specific company property. It also comes before some secured debts, which are described in another part of the law called Schedule 7. However, there’s one exception to this rule, which is explained in section 312 of the Companies Act. This section says that some other payments, like wages owed to employees, might come before your right to be paid back.

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Next up: 239ADN: Lien to secure indemnity

or “Administrator's right to company property to ensure repayment”

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Companies Act 1993
Voluntary administration
239ADM: Administrator's right of indemnity has priority over other debts

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

239ADMAdministrator's right of indemnity has priority over other debts

Subject to section 312, the administrator's right of indemnity under this subpart has priority over—
all the company's unsecured debts; and
debts of the company secured by a charge of the kind described in clause 2(1)(b) of Schedule 7.

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