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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

266: Powers of court

You could also call this:

“The court can make people follow the liquidator's requests and answer questions about the company”

If you don’t do what the liquidator asks you to do under section 261, the court can make you do it. The liquidator can ask the court to do this.

The liquidator can also ask the court to make you do two things. First, you might have to go to court and answer questions about the company’s business, money, or what it does. You’ll have to promise to tell the truth. The liquidator, or a lawyer working for them, can ask you these questions. Second, you might have to show any books, records, or documents about the company that you have or control.

If you have to answer questions in court, someone will write down what you say. You’ll need to sign this written record to show it’s correct.

The court can decide how to use the record of your answers. This record can be used as evidence in some legal cases. These cases might be about this part of the law, section 383, part of the Financial Markets Conduct Act, or part of the Takeovers Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321929.

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265: Examination by liquidator, or

“Liquidator can formally question you about a company being closed down”

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“Protection from self-incrimination during company examinations”

Part 16 Liquidations
Duties, rights, and powers of liquidators

266Powers of court

  1. The court may, on the application of the liquidator, order a person who has failed to comply with a requirement of the liquidator under section 261 to comply with that requirement.

  2. The court may, on the application of the liquidator, order a person to whom section 261 applies to—

  3. attend before the court and be examined on oath or affirmation by the court or the liquidator or a barrister or solicitor acting on behalf of the liquidator on any matter relating to the business, accounts, or affairs of the company:
    1. produce any books, records, or documents relating to the business, accounts, or affairs of the company in that person's possession or under that person's control.

      1. Where a person is examined under subsection (2)(a),—

      2. the examination must be recorded in writing; and
        1. the person examined must sign the record.

          1. Subject to any directions by the court, a record of an examination under this section is admissible in evidence in any proceedings under this Part, section 383, subpart 6 of Part 8 of the Financial Markets Conduct Act 2013, or section 44F of the Takeovers Act 1993.

          Notes
          • Section 266(4): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
          • Section 266(4): amended, on , by section 25 of the Securities Amendment Act 2006 (2006 No 46).