Companies Act 1993

Liquidations - The process of liquidation

246: Interim liquidator

You could also call this:

“Court can appoint temporary manager to protect company assets during liquidation decision”

When someone asks the court to put a company into liquidation, the court can appoint an interim liquidator. This person’s job is to look after the company’s assets and keep their value until a final decision is made.

The court can choose a specific person or an Official Assignee from a particular area to be the interim liquidator. This interim liquidator has similar rights and powers as a regular liquidator, but only as much as they need to keep the company’s assets valuable. The court can also limit what the interim liquidator is allowed to do if it thinks that’s necessary.

The interim liquidator starts their job as soon as the court makes the order to appoint them. The court has to write down the exact date and time when this order was made.

If there’s any confusion about whether something happened before or after the interim liquidator was appointed, it’s assumed that it happened after, unless someone can prove otherwise.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321694.

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Part 16 Liquidations
The process of liquidation

246Interim liquidator

  1. If an application has been made to the court for an order that a company be put into liquidation, the court may, if it is satisfied that it is necessary or expedient for the purpose of maintaining the value of assets owned or managed by the company, appoint a named person, or an Official Assignee for a named district, as interim liquidator.

  2. Subject to subsection (3), an interim liquidator has the rights and powers of a liquidator to the extent necessary or desirable to maintain the value of assets owned or managed by the company.

  3. The court may limit the rights and powers of an interim liquidator in such manner as it thinks fit.

  4. The appointment of an interim liquidator takes effect on the date on which, and at the time at which, the order appointing that interim liquidator is made.

  5. The court must record in the order appointing the interim liquidator the date on which, and the time at which, the order was made.

  6. If any question arises as to whether on the date on which an interim liquidator was appointed an act was done or a transaction was entered into or effected before or after the time at which the interim 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 246(4): inserted, on , by section 5 of the Companies Amendment Act 1999 (1999 No 19).
  • Section 246(5): inserted, on , by section 5 of the Companies Amendment Act 1999 (1999 No 19).
  • Section 246(6): inserted, on , by section 5 of the Companies Amendment Act 1999 (1999 No 19).