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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

253: Principal duty of liquidator

You could also call this:

“Liquidator's main job: manage company assets during closure”

When a company is being closed down, someone called a liquidator is put in charge. Their main job is to take care of the company’s things and money. You need to know that the liquidator has to do a few important tasks.

First, they need to collect all the company’s stuff and keep it safe. Then, they have to sell these things to get money. After that, they give this money to the people the company owes money to. They do this following the rules set out in the law.

If there’s any money left over after paying everyone, the liquidator has to share it out. They do this using special rules found in another part of the law called section 313(4).

The liquidator must do all of this in a way that makes sense and doesn’t waste time or money. They have to be careful and do a good job.

Remember, there’s one exception to these duties. The liquidator might have to do things a bit differently if section 254 of the law says so.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321904.

Topics:
Business > Industry rules
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Part 16 Liquidations
Duties, rights, and powers of liquidators

253Principal duty of liquidator

  1. Subject to section 254, the principal duty of a liquidator of a company is—

  2. to take possession of, protect, realise, and distribute the assets, or the proceeds of the realisation of the assets, of the company to its creditors in accordance with this Act; and
    1. if there are surplus assets remaining, to distribute them, or the proceeds of the realisation of the surplus assets, in accordance with section 313(4)—
        1. in a reasonable and efficient manner.