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Companies Act 1993

Liquidations - Voidable transactions

295: Other orders

You could also call this:

“Court orders for repayment or return of assets after cancelling a company transaction”

If a court sets aside a transaction or charge under section 294, the court can make different orders. These orders can include:

You might have to pay the company back some or all of the money it paid in the transaction.

You might have to give back to the company any property it gave you in the transaction.

You might have to pay the company an amount that the court thinks is fair, based on the benefits you got from the transaction.

You might have to give the company property that the court thinks fairly represents the money the company paid or the value of property the company gave in the transaction.

The court might cancel all or part of a charge (like a loan) that the company gave.

You might have to provide security (like a guarantee) to make sure you follow the court’s orders.

The court can decide how much you can claim as a creditor in the liquidation after the transaction is set aside or an order is made.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322303.

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294: Procedure for setting aside transactions and charges, or

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Part 16 Liquidations
Voidable transactions

295Other orders

  1. If a transaction or charge is set aside under section 294, the court may make 1 or more of the following orders:

  2. an order that a person pay to the company an amount equal to some or all of the money that the company has paid under the transaction:
    1. an order that a person transfer to the company property that the company has transferred under the transaction:
      1. an order that a person pay to the company an amount that, in the court's opinion, fairly represents some or all of the benefits that the person has received because of the transaction:
        1. an order that a person transfer to the company property that, in the court's opinion, fairly represents the application of either or both of the following:
          1. money that the company has paid under the transaction:
            1. proceeds of property that the company has transferred under the transaction:
            2. an order releasing, in whole or in part, a charge given by the company:
              1. an order requiring security to be given for the discharge of an order made under this section:
                1. an order specifying the extent to which a person affected by the setting aside of a transaction or by an order made under this section is entitled to claim as a creditor in the liquidation.

                  Compare
                  • Corporations Act 2001 s 588FF(1)(a)–(d) (Aust)
                  Notes
                  • Section 295: replaced, on , by section 30 of the Companies Amendment Act 2006 (2006 No 56).