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New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Powers of court

239ADQ: Court may rule on validity of administrator's appointment

You could also call this:

“Court can check if an administrator was appointed correctly”

If you’re not sure if someone was properly appointed as an administrator or deed administrator for a company, you can ask the court to decide. You, the company, or any of the company’s people it owes money to can do this. You need to have a specific reason why you think the appointment might not be valid.

When the court looks at whether the appointment is valid or not, they don’t have to stick to just the reasons you gave. They can consider other things too.

If the court decides the appointment isn’t valid, they can say so even if that wasn’t one of the reasons you mentioned when you asked them to check.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321629.

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Part 15A Voluntary administration
Powers of court

239ADQCourt may rule on validity of administrator's appointment

  1. If there is doubt, on a specific ground, as to the validity of the appointment of a person as administrator or deed administrator, any of the following persons may apply to the court for a ruling on the validity of the appointment:

  2. the person appointed; or
    1. the company in question; or
      1. any of the company's creditors.

        1. In ruling that the appointment is invalid, the court is not limited to the grounds specified in the application.

        Compare
        • Corporations Act 2001 s 447C (Aust)
        Notes
        • Section 239ADQ: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).