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Companies Act 1993

Voluntary administration - Set-off and netting agreements

239AEL: Application of set-off under section 239AEG to transactions subject to netting agreements

You could also call this:

“Rules for handling set-offs in netting agreements during company administration”

When you are dealing with transactions that are part of a netting agreement, the rules about set-off in section 239AEG don’t apply. These transactions are covered by different rules in sections 239AEI to 239AEP instead.

However, there’s an exception to this. If you and the company in administration have other dealings that aren’t part of the netting agreement, then the leftover balance from the netting agreement can be used for set-off under section 239AEG. This happens when you and the company owe each other money or have other mutual dealings outside of the netting agreement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321653.

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239AEM: Transactions under netting agreement and effect on certain sections, or

“Special rules for netting agreements during company administration”

Part 15A Voluntary administration
Set-off and netting agreements

239AELApplication of set-off under section 239AEG to transactions subject to netting agreements

  1. Section 239AEG does not apply to transactions that are subject to a netting agreement to which sections 239AEI to 239AEP apply.

  2. However, a netted balance is to be treated as an amount to which section 239AEG applies if the company in administration and the other party to the netting agreement also have mutual credits, mutual debts, or other mutual dealings between them that are not subject to the netting agreement.

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