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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

257: Duties in relation to final report and accounts

You could also call this:

“Liquidator's final duties before removing a company from the register”

When you finish your job as a liquidator for a company, you need to do some important things. You must prepare a final report with all the required information and send it to every creditor who has a valid claim and to every shareholder. This report needs to say that all the company’s assets have been dealt with, all the money from selling these assets has been given out, and the company is ready to be taken off the New Zealand register. You also need to tell the creditors and shareholders how they can object to the company being removed from the register.

You have to send copies of these documents to the Registrar to be registered. You also need to give the Registrar a summary report with specific information they ask for.

Sometimes, if you ask, the court might say you don’t have to do all of this, or they might change what you need to do. They can decide what’s fair.

If you don’t do these things, you’re breaking the law. You could be punished as set out in another part of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321914.

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“Managing company funds during liquidation”

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Part 16 Liquidations
Duties, rights, and powers of liquidators

257Duties in relation to final report and accounts

  1. As soon as practicable after completing his or her duties in relation to the liquidation, the liquidator of a company must—

  2. prepare and send to every creditor whose claim has been admitted and every shareholder—
    1. a final report containing the prescribed information; and
      1. a statement that—
        1. all known assets have been disclaimed, or realised, or distributed without realisation; and
          1. all proceeds of realisation have been distributed; and
            1. the company is ready to be removed from the New Zealand register; and
            2. a summary of the applicable grounds on which the creditor or shareholder may object to the removal of the company from the New Zealand register under section 321:
            3. send or deliver copies of the documents referred to in paragraph (a) to the Registrar for registration:
              1. provide to the Registrar, in the manner specified by the Registrar, a summary report that contains the prescribed information.

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

                2. exempt the liquidator from compliance with the provisions of subsection (1); 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. 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 257(1)(a)(i): replaced, on , by section 42(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                    • Section 257(1)(c): inserted, on , by section 42(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                    • Section 257(3): inserted, on , by section 42(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).