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305: Rights and duties of secured creditors
or “What secured creditors can do and must do when a company is being liquidated”
You could also call this:

“How to calculate the amount owed to creditors when a company is liquidated”

When a company is being liquidated, you need to know how much money is owed to each person or business. This is called the ‘amount of claim’. You must work out this amount at the exact date and time when the liquidation starts.

If the debt is in a different currency, like US dollars or euros, you need to change it to New Zealand dollars. You do this using the exchange rate on the day the liquidation begins. If there’s more than one exchange rate that day, you use the average of all the rates.

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Next up: 307: Claim not of an ascertained amount

or “How to handle claims without a fixed amount in company liquidation”
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Part 16 Liquidations
Creditors' claims

306Ascertainment of amount of claim

  1. The amount of a claim must be ascertained as at the date and time of commencement of the liquidation.

  2. The amount of a claim based on a debt or liability denominated in a currency other than New Zealand currency must be converted into New Zealand currency at the rate of exchange on the date of commencement of the liquidation, or, if there is more than 1 rate of exchange on that date, at the average of those rates.

Notes
  • Section 306(1): amended, on , by section 12 of the Companies Amendment Act 1999 (1999 No 19).