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New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Powers of court

239ADS: Court may supervise administrator or deed administrator

You could also call this:

“Court can oversee and correct administrator's actions to protect company stakeholders”

The court can step in and make any order it thinks is fair if it believes the administrator or deed administrator is not managing the company’s business, property, or affairs well. This can happen if their actions are hurting the interests of some or all of the company’s creditors or shareholders. The court can also act if it thinks the administrator’s past, present, or future conduct has been, is, or will be harmful to these interests.

If you’re a creditor or shareholder of the company, or if you’re the Registrar, you can ask the court to make an order like this. You would do this by making an application to the court.

This rule helps protect the interests of people who have a stake in the company when it’s under administration. It gives the court the power to oversee and correct any problems with how the administrator or deed administrator is running things.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321631.

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Business > Industry rules
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239ADR: Administrator may seek directions, or

“Administrator can ask the court for guidance on their duties”

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239ADT: Court may order administrator or deed administrator to remedy default, or

“Court can order administrators to fix their mistakes”

Part 15A Voluntary administration
Powers of court

239ADSCourt may supervise administrator or deed administrator

  1. The court may make any order it thinks just if it is satisfied that—

  2. the administrator's or the deed administrator's management of the company's business, property, or affairs is prejudicial to the interests of some or all of the company's creditors or shareholders; or
    1. the administrator's or deed administrator's conduct or proposed conduct has been or is or will be prejudicial to those interests.

      1. An application for an order under this section may be made by—

      2. a creditor or shareholder of the company in question; or
        1. the Registrar.

          Compare
          • Corporations Act 2001 s 447E(1) (Aust)
          Notes
          • Section 239ADS: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).