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Companies Act 1993

Liquidations - The process of liquidation

240: Interpretation

You could also call this:

“Definitions of key terms used in the Companies Act 1993 for closing down a company”

In this part of the law, there are special meanings for certain words:

A creditor is someone who can claim that a company owes them money when the company is being closed down. A secured creditor (someone who has a special right to be paid first) is only counted as a creditor in certain situations.

A liquidation committee is a group of people chosen to help with closing down a company.

A liquidator is a person who is put in charge of closing down a company. This can include someone who is temporarily in charge.

An Official Assignee is someone who is appointed to handle bankruptcy cases.

A statutory demand is a formal request for payment that has a specific meaning in the law.

When this part of the law talks about a ‘company’, it can mean different things:

  • A regular company as defined in another part of the law
  • An overseas company that this part of the law applies to
  • An association (which is explained in another section)
  • Any other type of organisation that this part of the law applies to

The law also says that when it talks about appointing a liquidator, it can mean appointing more than one person to do the job together.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321668.

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Part 16 Liquidations
The process of liquidation

240Interpretation

  1. In this Act, unless the context otherwise requires,—

    creditor means a person who, in a liquidation, would be entitled to claim in accordance with section 303 that a debt is owing to that person by the company; and includes a secured creditor only—

    1. for the purposes of sections 241(2)(c), 247, 250, 280, and 289; or
      1. to the extent of the amount of any debt owing to the secured creditor in respect of which the secured creditor claims under section 305 as an unsecured creditor

        liquidation committee means a liquidation committee appointed under section 314

          liquidator means a person who is appointed as a liquidator of a company (and includes a person who is appointed as an interim liquidator of a company under section 246)

            Official Assignee means an Official Assignee or Deputy Assignee appointed under the Insolvency Act 2006

              statutory demand has the meaning set out in section 289.

              1. In this Part, company means—

              2. a company within the meaning of section 2:
                1. an overseas company to which this Part applies (see section 342):
                  1. an association (see section 240B):
                    1. any other body corporate to which this Part applies under any other enactment.

                      1. For the purposes of this Act, the power to appoint a liquidator of a company includes the power to appoint 2 or more persons as liquidators of a company.

                      Notes
                      • Section 240(1) creditor: replaced, on , by section 30 of the Companies Act 1993 Amendment Act 1994 (1994 No 6).
                      • Section 240(1) creditor paragraph (a): amended, on , by section 29(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                      • Section 240(1) liquidator: inserted, on , by section 29(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                      • Section 240(1) Official Assignee: amended, on , by section 445 of the Insolvency Act 2006 (2006 No 55).
                      • Section 240(1A): inserted, on , by section 6 of the Companies Amendment Act 2016 (2016 No 57).