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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

268: Power of liquidator to enforce liability of shareholders and former shareholders

You could also call this:

“Liquidator can make shareholders pay what they owe to the company”

If you’re a company liquidator, you have special powers to make shareholders pay what they owe to the company. You can do this in two ways:

First, if a shareholder needs to pay money for their shares, you can ask them to do so. This is called ‘making calls’ on their shares.

Second, if a current or former shareholder owes money to the company for any reason, you can make them pay it.

When you ask a shareholder to pay for their shares, you must do it in writing. This means you can’t just tell them over the phone or in person - you need to write it down.

These powers help you get money that’s owed to the company when you’re sorting out its affairs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321932.

Topics:
Business > Industry rules
Business > Fair trading
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Part 16 Liquidations
Duties, rights, and powers of liquidators

268Power of liquidator to enforce liability of shareholders and former shareholders

  1. The liquidator may—

  2. if a shareholder is liable to calls, make calls on the shares held by that shareholder:
    1. if a shareholder or former shareholder is liable to the company, enforce that liability.

      1. A call made under subsection (1)(a) must be made in writing.