Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
281: Validity of acts of liquidators
or “Liquidator actions remain valid even if appointment rules aren't fully met”
You could also call this:

“Confirm eligibility and agree to be a company liquidator”

Before you can become a liquidator of a company, you need to do a few important things. First, you must agree in writing that you want to be the liquidator, and you can’t take back this agreement when you’re appointed. Second, you need to write down and confirm some important facts about yourself.

You need to say that you’re a licensed insolvency practitioner. This means you’re officially allowed to help companies that are closing down. Sometimes, there might be special rules that let other people do this job too.

You also need to say that the rules allow you to be a liquidator for this specific company. There’s a special law called the Insolvency Practitioners Regulation Act 2019 that decides this.

Lastly, you need to confirm that you’re not banned from being a liquidator. There are some reasons why you might not be allowed to do this job, and you need to make sure none of those reasons apply to you.

If you become a liquidator without confirming all these things, you’re breaking the law. You could get in trouble and face a punishment.

It’s important to know that these rules don’t apply to someone called an Official Assignee. They have different rules to follow.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: 283: Vacancies in office of liquidator

or “How to replace a liquidator who leaves their role”
Next

Part 16 Liquidations
Appointment and supervision of liquidators

282What liquidator must do before appointment

  1. A person must not be appointed as a liquidator of a company unless the person has—

  2. consented in writing and has not withdrawn that consent at the time of appointment; and
    1. certified in writing that they—
      1. are a licensed insolvency practitioner (or, if section 243A applies to the company, a licensed insolvency practitioner or any other person described in section 68(1) of the Insolvency Practitioners Regulation Act 2019); and
        1. are permitted to act as a liquidator of the company under the Insolvency Practitioners Regulation Act 2019; and
          1. are not disqualified from appointment under section 280(2).

          2. A person who, with their consent, is appointed as a liquidator despite failing to certify the matters set out in subsection (1)(b) commits an offence and is liable on conviction to the penalty set out in section 373(2).

          3. This section does not apply to an Official Assignee.

          Notes
          • Section 282: replaced, on , by section 48 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).