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Companies Act 1993

Liquidations - Voidable transactions

294: Procedure for setting aside transactions and charges

You could also call this:

“How to challenge certain company transactions or charges as a liquidator”

If you’re a liquidator and you want to set aside a transaction or charge that can be cancelled under section 292 or 293, you need to follow these steps:

You have to file a notice with the court. This notice needs to be in writing and include your postal, email, and street addresses. You must say which transaction or charge you want to set aside and describe what property or amount of money you want to get back.

You also need to serve this notice to the other party involved in the transaction or the person holding the charge. You must tell them they can object to your action by sending you a written notice within 20 working days. They need to give full reasons for objecting and list any documents that support their objection.

Your notice should explain that if the person doesn’t object, the transaction or charge will be automatically set aside. But if they do object, you might go to court to try and set it aside.

If the person doesn’t object within 20 working days, the transaction or charge is automatically set aside. Even if they do object, you can still ask the court to set it aside.

Remember, when someone objects, they need to give you all their reasons and list any documents that back up their objection.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322302.

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“When certain charges on company property can be cancelled”

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Part 16 Liquidations
Voidable transactions

294Procedure for setting aside transactions and charges

  1. A liquidator who wishes to set aside a transaction or charge that is voidable under section 292 or 293 must—

  2. file a notice with the court that meets the requirements set out in subsection (2); and
    1. serve the notice as soon as practicable on—
      1. the other party to the transaction or the charge holder, as the case may be; and
        1. any other party from whom the liquidator intends to recover.

        2. The liquidator's notice must—

        3. be in writing; and
          1. state the liquidator's postal, email, and street addresses; and
            1. specify the transaction or charge to be set aside; and
              1. describe the property or state the amount that the liquidator wishes to recover; and
                1. state that the person named in the notice may object to the transaction or charge being set aside by sending to the liquidator a written notice of objection that is received by the liquidator at his or her postal, email, or street address within 20 working days after the liquidator's notice has been served on that person; and
                  1. state that the written notice of objection must contain full particulars of the reasons for objecting and must identify any documents that evidence or substantiate the reasons for objecting; and
                    1. state that the transaction or charge will be set aside as against the person named in the notice if that person does not object; and
                      1. state that if the person named in the notice does object, the liquidator may apply to the court for the transaction or charge to be set aside.

                        1. The transaction or charge is automatically set aside as against the person on whom the liquidator has served the liquidator's notice, if that person has not objected by sending to the liquidator a written notice of objection that is received by the liquidator at his or her postal, email, or street address within 20 working days after the liquidator's notice has been served on that person.

                        2. The notice of objection must contain full particulars of the reasons for objecting and must identify documents that evidence or substantiate the reasons for objecting.

                        3. A transaction or charge that is not automatically set aside may still be set aside by the court on the liquidator's application.

                        Notes
                        • Section 294: replaced, on , by section 29 of the Companies Amendment Act 2006 (2006 No 56).