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Companies Act 1993

Liquidations - Appointment and supervision of liquidators

285: Meaning of failure to comply

You could also call this:

“What counts as not following the rules for liquidators”

In section 286, ‘failure to comply’ means when you don’t follow a law, rule, or court order that applies to you as a liquidator. This could be any law, rule, or order that you need to follow when doing your job as a liquidator.

If there’s a case in court about this, there are two important things to know. First, if a District Court or High Court has already found that you didn’t follow the rules in another case about breaking this law or any other law, that finding can be used as evidence in the new case. Second, to prove this finding, someone can show a document with the court’s official seal on it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321959.

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Part 16 Liquidations
Appointment and supervision of liquidators

285Meaning of failure to comply

  1. In section 286, failure to comply means a person’s failure to comply with an enactment, a rule of law, or a court order to the extent that the enactment, rule, or order applies to the person in the person's capacity as a liquidator.

  2. In proceedings under section 286,—

  3. a finding of any fact made in proceedings before the District Court or High Court for an offence under this Act or any other enactment that there was a failure to comply is prima facie evidence of that fact:
    1. a finding described in paragraph (a) may be proved by production of a document under the seal of the court in which the finding was made.

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      Notes
      • Section 285: replaced, on , by section 51 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).