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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

256: Duties in relation to records

You could also call this:

“Keeping and sharing company records when closing down a business”

When you are in charge of closing down a company, you need to be careful with the company’s records. You must keep all the accounting records and other documents from the closing process. You also need to keep the company’s own records and documents.

You have to let certain people look at these records. This includes a special group called the liquidation committee, unless you think it would be bad for the closing process. If a judge says so, you also have to let people who are owed money by the company or who own part of it see the records.

You need to keep all these records for at least 6 years after you finish closing the company. Sometimes, you might need to keep them for longer if the Registrar says so. The Registrar will put a notice on a website if they want you to keep the records for longer.

If you don’t follow these rules about keeping and sharing records, you’re breaking the law. You could be punished with the penalty described in section 373(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321912.

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Part 16 Liquidations
Duties, rights, and powers of liquidators

256Duties in relation to records

  1. The liquidator of a company must—

  2. keep accounting records and other documents of the liquidation and permit those records, and the records and other documents of the company, to be inspected by—
    1. any liquidation committee appointed under section 314, unless the liquidator believes on reasonable grounds that inspection would be prejudicial to the liquidation; and
      1. if the court so orders, a creditor or shareholder; and
      2. keep the accounting records and other documents of the liquidation, and the records and other documents of the company, for not less than 6 years after completion of the liquidation (or any longer period specified in a notice referred to in subsection (3)).

        1. The Registrar may, before or after the completion of the liquidation, require any records and documents to be retained for longer than 6 years after the completion of the liquidation.

        2. The Registrar must give notice of a requirement under subsection (2) on an Internet site maintained by or on behalf of the Registrar.

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

        Notes
        • Section 256: replaced, on , by section 40 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).