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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

255: Other duties of liquidator

You could also call this:

“Liquidator's responsibilities for communication and reporting”

As a liquidator, you have other duties besides those mentioned in section 253. You must do these things right after you’re appointed:

You need to tell everyone about your appointment by making a public announcement. This announcement should say who appointed you, when the liquidation started, and how people can contact you.

You must also tell the Registrar about your appointment by the next working day.

Within a certain time (which can be 5 or 25 working days, depending on how you were appointed), you need to:

  1. Make a list of everyone the company owes money to (the creditors) and their contact details.
  2. Send a report to all the creditors, shareholders, and the Registrar. This report should explain what’s happening and tell them they can ask for a meeting.
  3. Tell everyone about any interests you might have that could affect your work as a liquidator.
  4. Let people know that liquidators must be licensed and that they can get more information from the Registrar.

Every six months after the liquidation starts, you need to send an update report to the creditors, shareholders, and the Registrar. You also need to update them about any new interests you might have.

If you don’t do these things, you might get in trouble with the law.

The court can sometimes change these rules for you if you ask them to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321907.

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Part 16 Liquidations
Duties, rights, and powers of liquidators

255Other duties of liquidator

  1. Without limiting section 253, a liquidator has the other functions and duties specified in this Act.

  2. Without limiting subsection (1), a liquidator must,—

  3. forthwith after being appointed or being notified of his or her appointment, give public notice of—
    1. the liquidator's appointment, specifying who made the appointment (see section 241(2)) and, if the liquidator was appointed by the court, who applied to the court for the appointment; and
      1. the date and time of the commencement of the liquidation; and
        1. the address and telephone number to which, during normal business hours, inquiries may be directed by a creditor or shareholder; and
        2. before the end of the next working day after appointment, deliver to the Registrar for registration a notice of the liquidator’s appointment; and
          1. within the applicable period referred to in subsection (3),—
            1. prepare a list of every known creditor of the company and, if known, each creditor's address for communications (which may be an electronic address); and
              1. prepare and send to every known creditor, every shareholder, and the Registrar for registration,—
                1. an initial report containing the prescribed information; and
                  1. a notice explaining the right of a creditor or shareholder to require the liquidator to call a meeting of creditors under section 314; and
                    1. an interests statement that complies with section 255A; and
                      1. a notice stating that liquidators of insolvent companies are required to be licensed insolvency practitioners, and that more information about the regulation of insolvency practitioners is available from the Registrar; and
                    2. within 20 working days after the end of each period of 6 months following the date of commencement of the liquidation, prepare and send to every known creditor and every shareholder, and to the Registrar for registration,—
                      1. a report on the liquidation containing the prescribed information; and
                        1. an updated interests statement that complies with section 255A.

                        2. For the purposes of subsection (2)(c), applicable period means,—

                        3. in the case of a liquidator appointed under section 241(2)(a), (b), or (d), 5 working days after the liquidator's appointment; or
                          1. in the case of a liquidator appointed under paragraph (c) of subsection (2) of section 241, 25 working days after the liquidator's appointment; or
                            1. in either case, such longer period as the court may allow.

                              1. A person who fails to comply with subsection (2)(c) or (d) commits an offence and is liable on conviction to the penalty set out in section 373(2).

                              2. Subsection (2)(c)(ii)(C) and (D) does not apply to an Official Assignee.

                              3. The court may, on the application of a liquidator,—

                              4. exempt the liquidator from compliance with subsection (2)(c) or (d); or
                                1. modify the application of those provisions in relation to the liquidator,—
                                    1. on such terms and conditions as the court thinks fit.

                                  1. Repealed

                                  2. Repealed
                                  Notes
                                  • Section 255(2)(a)(i): amended, on , by section 38(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(a)(ii): amended, on , by section 6(a) of the Companies Amendment Act 1999 (1999 No 19).
                                  • Section 255(2)(b): replaced, on , by section 38(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(c)(i): replaced, on , by section 38(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(c)(ii)(A): replaced, on , by section 38(4) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(c)(ii)(C): replaced, on , by section 38(5) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(c)(ii)(D): inserted, on , by section 38(5) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(2)(d): replaced, on , by section 38(6) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(3)(a): amended, on , by section 12 of the Companies Amendment Act 2006 (2006 No 56).
                                  • Section 255(3A): inserted, on , by section 38(7) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(3B): inserted, on , by section 38(7) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(4)(a): replaced, on , by section 38(8) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                  • Section 255(5): repealed, on , by section 19(3) of the Companies Amendment Act 2006 (2006 No 56).
                                  • Section 255(6): repealed, on , by section 19(3) of the Companies Amendment Act 2006 (2006 No 56).