Plain language law

New Zealand law explained for everyone

239AED: Effect of contravention of this subpart
or “Breaking voluntary administration rules doesn't usually invalidate actions, but courts can decide otherwise”

You could also call this:

“Legal validity of actions taken during company administration”

When a company is in administration, anything done by the administrator or with their permission is considered valid and effective under the law. This applies to payments made, deals entered into, or any other actions taken. However, these actions must be done in good faith, which means with honest intentions and without trying to deceive anyone.

For example, if the administrator decides to sell some of the company’s property or sign a new contract, these actions will be recognised as legal and binding. This rule helps to make sure that the administrator can effectively manage the company during this difficult time.

Remember, this only applies to things done during the administration period and when the administrator is acting honestly and responsibly.

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Next up: 239AEF: Interruption of time for doing act

or “Extra time given when law prevents meeting deadlines”

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Companies Act 1993
Voluntary administration
239AEE: Effect of things done during administration of company

Part 15A Voluntary administration
Miscellaneous

239AEEEffect of things done during administration of company

A payment made, transaction entered into, or any other act or thing done, in good faith, by or with the consent of the administrator of a company in administration is valid and effective for the purposes of this Act.

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