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Companies Act 1993

Liquidations - The process of liquidation

245: Liquidator may dispense with meetings of creditors

You could also call this:

“Liquidator can skip creditor meetings if deemed unnecessary”

If you’re a liquidator, you don’t always have to call a meeting with the creditors. You can skip these meetings if you think it’s not necessary. Here’s how you can do this:

First, you need to think about the company’s money situation and what’s likely to happen when it’s closed down. If you decide a meeting isn’t needed, you can tell the creditors in writing. In your notice, you need to explain why you don’t think a meeting is necessary.

You also need to tell the creditors that if they want a meeting, they can ask for one. They have 10 working days after they get your notice to do this. If no one asks for a meeting during this time, you don’t have to hold one.

When you send this notice to the creditors, you also need to include some other important papers. These are a report about the company, a statement about any interests involved, and some other notices that the law requires.

Remember, if any creditor asks for a meeting within the 10-day period, you’ll still need to hold one. But if no one does, you can go ahead without a meeting.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321692.

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Part 16 Liquidations
The process of liquidation

245Liquidator may dispense with meetings of creditors

  1. A liquidator is not required to call a meeting of creditors under section 243 or section 244, as the case may be, if—

  2. the liquidator considers, having regard to the assets and liabilities of the company, the likely result of the liquidation of the company, and any other relevant matters, that no such meeting should be held; and
    1. the liquidator gives notice in writing to the creditors stating—
      1. that the liquidator does not consider that a meeting should be held; and
        1. the reasons for the liquidator's view; and
          1. that no such meeting will be called unless a creditor gives notice in writing to the liquidator, within 10 working days after receiving the notice, requiring a meeting to be called; and
          2. no notice requiring the meeting to be called is received by the liquidator within that period.

            1. Notice under subsection (1)(b) must be given to every known creditor together with the report, interests statement, and notices referred to in section 255(2)(c).

            Compare
            • 1955 No 63 s 235A
            • 1989 No 101 s 8
            Notes
            • Section 245(2): replaced, on , by section 17 of the Companies Amendment Act 2006 (2006 No 56).
            • Section 245(2): amended, on , by section 35 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).