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Companies Act 1993

Liquidations - The process of liquidation

241A: Commencement of liquidation to be recorded

You could also call this:

“Record when a company's liquidation begins”

When a company is being liquidated, it’s important to record when the liquidation starts. This is how it’s done:

If the shareholders choose a liquidator, they need to write down the date and time when they made this decision.

If the company’s board picks a liquidator, they need to write down the date and time when they appointed the liquidator.

If a court chooses a liquidator, the court needs to write down the date and time when they made this decision.

If the creditors (people the company owes money to) choose a liquidator, they need to write down the date and time when they made this decision.

Sometimes, there might be questions about whether something happened before or after a liquidator was appointed. Unless someone can prove otherwise, anything that happened on the same day as the appointment is assumed to have happened after the liquidator was appointed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321681.

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241AA: Restriction on appointment of liquidator by shareholders or board after application for court appointment served on company, or

“Limits on who can appoint a liquidator after a court request is made”

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242: Liquidators to act jointly unless otherwise stated, or

“Liquidators must work together unless given permission to act independently”

Part 16 Liquidations
The process of liquidation

241ACommencement of liquidation to be recorded

  1. If—

  2. a liquidator is appointed under section 241(2)(a), the shareholders must record in the special resolution appointing the liquidator the date on which, and the time at which, the special resolution was passed; or
    1. a liquidator is appointed under section 241(2)(b), the board of the company must record in the instrument appointing the liquidator the date on which, and the time at which, the liquidator was appointed; or
      1. a liquidator is appointed under section 241(2)(c), the court must record in the order appointing the liquidator the date on which, and the time at which, the order was made; or
        1. a liquidator is appointed under section 241(2)(d), the creditors must record in the resolution appointing the liquidator the date on which, and the time at which, the resolution was passed.

          1. If any question arises as to whether on the date on which a liquidator was appointed an act was done or a transaction was entered into or effected before or after the time at which the liquidator was appointed, that act or transaction is, in the absence of proof to the contrary, deemed to have been done or entered into or effected, as the case may be, after that time.

          Notes
          • Section 241A: inserted, on , by section 4 of the Companies Amendment Act 1999 (1999 No 19).
          • Section 241A(1)(d): inserted, on , by section 8 of the Companies Amendment Act 2006 (2006 No 56).