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New Zealand law explained for everyone

Companies Act 1993

Liquidations - The process of liquidation

247: Power to stay or restrain certain proceedings against company

You could also call this:

“Court can pause or stop legal actions against a company during liquidation request”

If someone asks the court to appoint a liquidator for a company, the company, its creditors, or shareholders can ask for certain legal actions against the company to be paused or stopped. You can do this after the request for a liquidator is made, but before one is actually appointed.

If there’s a case against the company in the court or Court of Appeal, you can ask that court to pause the case. For any other legal action against the company in any court or tribunal, you can ask the court to stop that action.

The court or Court of Appeal can decide to pause or stop these actions. They can also set conditions on how this is done. This helps protect the company while the court is deciding whether to appoint a liquidator.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321696.

Topics:
Business > Industry rules
Crime and justice > Courts and legal help
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246: Interim liquidator, or

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

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248: Effect of commencement of liquidation, or

“What happens when a company starts liquidation”

Part 16 Liquidations
The process of liquidation

247Power to stay or restrain certain proceedings against company

  1. At any time after the making of an application to the court under section 241(2)(c) to appoint a liquidator of a company and before a liquidator is appointed, the company or any creditor or shareholder of the company may,—

  2. in the case of any application or proceeding against the company that is pending in the court or Court of Appeal, apply to the court or Court of Appeal, as the case may be, for a stay of the application or proceeding:
    1. in the case of any other application or proceeding pending against the company in any court or tribunal, apply to the court to restrain the application or proceeding—
        1. and the court or Court of Appeal, as the case may be, may stay or restrain the application or proceeding on such terms as it thinks fit.

      Compare
      • 1955 No 63 s 221