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Companies Act 1993

Voluntary administration - Powers of court

239ADP: Orders to protect creditors during administration

You could also call this:

“Court can make orders to safeguard creditors' interests during company administration”

If a company is in administration, the court can make orders to protect the interests of the company’s creditors. The Registrar or the Financial Markets Authority (FMA) can ask the court to do this. The FMA can only make this request if the company is a financial markets participant.

You, as a creditor of the company, can also ask the court to make an order to protect your interests while the company is in administration. The court will make any order it thinks is necessary to protect you.

When the court makes these orders, it can add conditions to them. This means the orders might come with certain rules or requirements that need to be followed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321628.

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Part 15A Voluntary administration
Powers of court

239ADPOrders to protect creditors during administration

  1. On the application of the Registrar or, if the company is a financial markets participant, the FMA, the court may make any order that it thinks necessary to protect the interests of the company's creditors while the company is in administration.

  2. On the application of a creditor of a company, the court may make any order that it thinks necessary to protect the interests of that creditor while the company is in administration.

  3. An order may be made subject to conditions.

Compare
  • Corporations Act 2001 s 447B (Aust)
Notes
  • Section 239ADP: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
  • Section 239ADP(1): replaced, on , by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).