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New Zealand law explained for everyone

Companies Act 1993

Liquidations - Creditors' claims

308: Fines and penalties

You could also call this:

“Companies must pay fines and penalties for breaking laws, even during liquidation”

This part of the law is about fines and penalties for companies. It says that if a company has to pay fines, penalties, or other money for breaking the law, this part of the law doesn’t stop that from happening.

You can still make the company pay these things even if the company is being closed down (liquidated). This includes:

  • Fines, money penalties, or orders to pay money that a court gives the company for committing a crime.
  • Money penalties that a company has to pay to the government for breaking any law.
  • Money that a court says the company must pay for the costs of the court case about the crime or law-breaking.

It doesn’t matter if these fines or penalties were given before or after the company started being closed down. The company still has to pay them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322334.

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Part 16 Liquidations
Creditors' claims

308Fines and penalties

  1. Nothing in this Part limits or affects the recovery of—

  2. a fine, monetary penalty, sentence of reparation, or other order for the payment of money imposed on a company, whether before or after the commencement of the liquidation of the company, for the commission of an offence; or
    1. a monetary penalty payable to the Crown imposed on a company by a court, whether before or after the commencement of the liquidation of the company, for the breach of any enactment; or
      1. costs ordered to be paid by the company in relation to proceedings for the offence or breach.

        Notes
        • Section 308(a): amended, on , by section 25 of the Statutes Amendment Act 2018 (2018 No 27).