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Companies Act 1993

Voluntary administration - Single administration of related companies in administration

239AET: Guidelines for single administration order

You could also call this:

“Rules for deciding if multiple companies can be managed together in administration”

When deciding if it’s fair to combine the administration of multiple companies, the court needs to think about several things. They will look at how much one company was involved in running the others. They’ll also check how the companies acted towards each other’s creditors. The court will consider if the problems that led to one company needing administration were caused by the actions of the other companies. They’ll also look at how much the businesses of these companies have been working together. Lastly, the court can think about any other things they believe are important. These are the main points the court uses to decide if it’s right to put multiple companies under a single administration order, as mentioned in section 239AER.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321662.

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Part 15A Voluntary administration
Single administration of related companies in administration

239AETGuidelines for single administration order

  1. In deciding whether it is just and equitable to make an order under section 239AER, the court must have regard to the following criteria:

  2. the extent to which any of the companies took part in the management of any of the other companies in the proposed pool:
    1. the conduct of any of the companies towards the creditors of any of the other companies in the proposed pool:
      1. the extent to which the circumstances that gave rise to any of the companies in the proposed pool being placed in administration are attributable to the actions of any of the other companies:
        1. the extent to which the businesses of the companies in the proposed pool have been combined:
          1. any other matters that the court thinks fit.

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