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Companies Act 1993

Liquidations - Duties, rights, and powers of liquidators

273: Certain conduct prohibited

You could also call this:

“Prohibited actions during company liquidation”

When a company is being liquidated or someone has asked the court to liquidate a company, you must not do certain things. You can’t leave New Zealand if you’re trying to avoid paying money to the company, avoid being questioned about the company’s business, or avoid following a court order or other rules about the company’s affairs. You also can’t hide or take away any of the company’s property to stop or delay the liquidator from taking control of it. Lastly, you can’t destroy, hide, or remove any of the company’s records or documents.

If you do any of these things, you’re breaking the law. This is called an offence, and if you’re found guilty, you’ll face a punishment. The specific punishment for this offence is listed in section 373(3) 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=DLM321941.

Topics:
Business > Industry rules
Crime and justice > Criminal law
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272: Guidelines for orders, or

“Rules for the court when deciding on orders about related companies”

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274: Duty to identify and deliver property, or

“Identifying and handing over company property during liquidation”

Part 16 Liquidations
Duties, rights, and powers of liquidators

273Certain conduct prohibited

  1. If a company is in liquidation, or an application has been made to the court for an order that a company be put into liquidation, as the case may be, no person may—

  2. leave New Zealand with the intention of—
    1. avoiding payment of money due to the company; or
      1. avoiding examination in relation to the affairs of the company; or
        1. avoiding compliance with an order of the court or some other obligation under this Part in relation to the affairs of the company; or
        2. conceal or remove property of the company with the intention of preventing or delaying the liquidator taking custody or control of it; or
          1. destroy, conceal, or remove records or other documents of the company.

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