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Companies Act 1993

Liquidations - The process of liquidation

244: Liquidator to summon meeting of creditors in other cases

You could also call this:

“Liquidator must call a creditors' meeting in certain situations”

If you’re the person in charge of closing down a company (the liquidator), sometimes you need to call a meeting with the people the company owes money to (the creditors). You must do this in two situations:

  1. If you think the company directors weren’t being honest when they said the company could pay its debts.

  2. If the special rules that let the company avoid having a creditors’ meeting no longer apply.

If a new person takes over as liquidator because the special rules no longer apply, they’re the one who needs to call the meeting.

When you call this meeting, you need to follow the same rules as for other creditor meetings. These rules are explained in section 243.

Remember, there are some cases where you don’t have to call a meeting. These are explained in section 245.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321691.

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“Directors declare company can pay debts within 12 months during liquidation”

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Part 16 Liquidations
The process of liquidation

244Liquidator to summon meeting of creditors in other cases

  1. Despite section 243(8), the liquidator of a company to which section 243A applies must call a meeting of creditors for the purpose specified in section 243(1)(a) or (b) if—

  2. the liquidator is satisfied that the directors who made the declaration described in section 243A did not have reasonable grounds to believe that the company would be able to pay or otherwise provide for its debts within the period stated in the declaration; or
    1. section 243A ceases to apply to the company.

      1. If, as a consequence of section 243A ceasing to apply, a new liquidator is appointed, the new liquidator must call the meeting of creditors.

      2. The provisions of section 243 apply, with any necessary modifications, in relation to the meeting of creditors.

      3. This section is subject to section 245.

      Notes
      • Section 244: replaced, on , by section 34 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).