Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Powers of court

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

You could also call this:

“Court can act when a company has no administrator”

If you are part of a company in administration or under a deed of company arrangement, and there’s no administrator or deed administrator in charge, the court can step in to help. The court has the power to make any order it thinks is fair in these situations.

If you’re a creditor or shareholder of the company, you can ask the court to make an order. If the company is being wound up, the person in charge of that process (called the liquidator) can also ask for an order. For companies involved in financial markets, the Financial Markets Authority (FMA) can request an order too. The Registrar, who keeps official records of companies, can also ask the court to make an order.

The court will look at the situation and decide what’s best to do. They might appoint a new administrator or make other decisions to help sort things out for the company.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321633.

Topics:
Business > Industry rules
Business > Fair trading
Crime and justice > Courts and legal help
Previous

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

“Court can order administrators to fix their mistakes”

Next

239ADUA: Meaning of failure to comply, or

“What it means when administrators don't follow the rules”

Part 15A Voluntary administration
Powers of court

239ADUCourt's power when office of administrator or deed administrator vacant, etc

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

  2. in the case of a company in administration, the office of the administrator is vacant or no administrator is acting; or
    1. in the case of a deed of company arrangement that is still in force, the office of the deed administrator is vacant or no deed administrator is acting.

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

      2. a creditor or shareholder of the company; or
        1. if the company is in liquidation, the liquidator; or
          1. if the company is a financial markets participant, the FMA; or
            1. the Registrar.

              Compare
              • Corporations Act 2001 s 447E(2) (Aust)
              Notes
              • Section 239ADU: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
              • Section 239ADU(2)(ba): inserted, on , by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).