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New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Powers of court

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

You could also call this:

“Court can order administrators to fix their mistakes”

If you are an administrator or deed administrator of a company, the court can order you to fix any mistakes you have made. This can happen in a few situations:

  1. If you don’t make or file a return, account, or other document, or don’t give a notice when you’re supposed to. If a shareholder or creditor tells you to fix this and you don’t do it within 10 working days, the court can step in.

  2. If the company is being closed down (liquidated), and the person in charge of closing it (the liquidator) asks you to do something, you need to do it. This might include showing your accounts of money you’ve received and spent, or paying the right amount to the liquidator.

If you make these mistakes, different people can ask the court to make you fix them:

  • For the first type of mistake, a shareholder or creditor of the company can ask.
  • For the second type, the liquidator can ask.
  • For any mistake, the Registrar (a government official) can ask.

This helps make sure you do your job properly and follow the rules when you’re managing a company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321632.

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239ADS: Court may supervise administrator or deed administrator, or

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

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239ADU: Court's power when office of administrator or deed administrator vacant, etc, or

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Part 15A Voluntary administration
Powers of court

239ADTCourt may order administrator or deed administrator to remedy default

  1. The court may order an administrator or deed administrator to remedy his or her default.

  2. Examples of default include the following:

  3. the administrator or deed administrator has failed, as required by this Act or otherwise by law, to make or file any return, account, or other document or to give a notice, and has not remedied the default within 10 working days after service on him or her of a notice by a shareholder or creditor of the company in administration requiring that the default be remedied:
    1. the administrator or deed administrator has failed, after being required at any time by the liquidator of the company to do so,—
      1. to render proper accounts of, and to vouch, his or her receipts and payments as administrator or deed administrator:
        1. to pay to the liquidator the amount properly payable to the liquidator.

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

        3. a shareholder or creditor of the company, in the case of a default referred to in subsection (2)(a):
          1. the liquidator, in the case of a default referred to in subsection (2)(b):
            1. in any case, by the Registrar.

              Notes
              • Section 239ADT: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).