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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

261: Power to obtain documents and information

You could also call this:

“Liquidators can request company documents and information from relevant parties”

If you’re a liquidator of a company, you have the power to ask for documents and information about the company. You can write to directors, shareholders, or anyone else who has company documents and ask them to give these to you.

You can also ask different people to help you. These people might be current or past directors, shareholders, people who helped start the company, employees, or others who know about the company’s affairs. You can ask them to meet with you, give you information, answer questions under oath, or help with the liquidation.

If you ask someone to meet with you, it might be at a meeting with the company’s creditors. Some people, like accountants or lawyers, might get paid for their time and expenses when they help you. If they don’t get paid, they still have to help if you ask them to.

If someone doesn’t do what you ask, they’re breaking the law. They could be punished as stated in section 373(3).

This power to get documents and information doesn’t change what section 260 says about your other powers as 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=DLM321921.

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Part 16 Liquidations
Duties, rights, and powers of liquidators

261Power to obtain documents and information

  1. A liquidator may, from time to time, by notice in writing, require a director or shareholder of the company or any other person to deliver to the liquidator such books, records, or documents of the company in that person's possession or under that person's control as the liquidator requires.

  2. A liquidator may, from time to time, by notice in writing require—

  3. a director or former director of the company; or
    1. a shareholder of the company; or
      1. a person who was involved in the promotion or formation of the company; or
        1. a person who is, or has been, an employee of the company; or
          1. a receiver, accountant, auditor, bank officer, or other person having knowledge of the affairs of the company; or
            1. a person who is acting or who has at any time acted as a solicitor for the company—
                1. to do any of the things specified in subsection (3).

              1. A person referred to in subsection (2) may be required—

              2. to attend on the liquidator at such reasonable time or times and at such place as may be specified in the notice:
                1. to provide the liquidator with such information about the business, accounts, or affairs of the company as the liquidator requests:
                  1. to be examined on oath or affirmation by the liquidator or by a barrister or solicitor acting on behalf of the liquidator on any matter relating to the business, accounts, or affairs of the company:
                    1. to assist in the liquidation to the best of the person's ability.

                      1. Without limiting subsection (3)(a), a person may be required to attend on the liquidator under that subsection at a meeting of creditors of the company.

                      2. Without limiting subsection (5), the liquidator may pay to a person referred to in paragraph (d) or paragraph (e) or paragraph (f) of subsection (2), not being an employee of the company, reasonable travelling and other expenses in complying with a requirement of the liquidator under subsection (3).

                      3. The court may, on the application of the liquidator or a person referred to in paragraph (d) or paragraph (e) or paragraph (f) of subsection (2), not being an employee of the company, order that that person is entitled to receive reasonable remuneration and travelling and other expenses in complying with a requirement of the liquidator under subsection (3).

                      4. A person referred to in paragraph (d) or paragraph (e) or paragraph (f) of subsection (2) is not entitled to refuse to comply with a requirement of the liquidator under subsection (3) by reason only that—

                      5. an application to the court to be paid remuneration or travelling and other expenses has not been made or determined; or
                        1. remuneration or travelling and other expenses to which that person is entitled have not been paid in advance; or
                          1. the liquidator has not paid that person travelling or other expenses.

                            1. A person who fails to comply with a notice given under this section commits an offence and is liable on conviction to the penalty set out in section 373(3).

                            2. Nothing in this section limits or affects section 260.

                            Notes
                            • Section 261(2): amended, on , by section 31(1) of the Companies Act 1993 Amendment Act 1994 (1994 No 6).
                            • Section 261(3A): inserted, on , by section 31(2) of the Companies Act 1993 Amendment Act 1994 (1994 No 6).
                            • Section 261(6A): inserted, on , by section 13 of the Companies Act 1993 Amendment Act 2001 (2001 No 18).