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Companies Act 1993

Voluntary administration - Notices about steps taken under this Part

239AEB: Company must disclose fact of administration

You could also call this:

“Company in financial trouble must add special words after its name”

When a company is in administration, it must follow special rules about how it presents itself in documents. You need to add specific words after the company’s name on any document that creates a legal obligation for the company.

If the company is currently being run by an administrator, you must add the words “administrator appointed” after the company’s name. This shows everyone that the company is not operating normally.

If the company has agreed to a plan to deal with its financial problems (called a deed of company arrangement), you must add the words “subject to deed of company arrangement” after the company’s name. This tells people that the company is following a special plan.

Sometimes, a company can ask the court to say they don’t have to add these words about the deed of company arrangement. The court might agree to this if there’s a good reason.

If a company doesn’t follow these rules about adding the right words, they’re breaking the law. They could be punished with the penalty described in section 373(1).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321641.

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Part 15A Voluntary administration
Notices about steps taken under this Part

239AEBCompany must disclose fact of administration

  1. A company must set out, in every document issued or signed by, or on behalf of, the company that evidences or creates a legal obligation of the company, after the company's name where it first appears,—

  2. for as long as the company is in administration, the words administrator appointed; and
    1. for as a long as a deed of company arrangement is in force, the words subject to deed of company arrangement.

      1. The court may, on an application by the company, exempt the company from the requirement in subsection (1)(b).

      2. A company that fails to comply with subsection (1) commits an offence and is liable on conviction to the penalty set out in section 373(1).

      Compare
      • Corporations Act 2001 s 450E (Aust)
      Notes
      • Section 239AEB: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).