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Companies Act 1993

Liquidations - Creditors' claims

310F: Application of set-off under section 310 to transactions subject to netting agreements

You could also call this:

“Rules for settling accounts with a company in liquidation when you have a netting agreement”

If you have a netting agreement with a company that’s in liquidation, section 310 doesn’t apply to the transactions covered by that agreement. Instead, sections 310A to 310O will apply to those transactions.

However, if you and the company in liquidation have other dealings that aren’t part of the netting agreement, the final balance from your netting agreement will be treated as an amount that section 310(1) applies to. This means it can be used in a set-off against those other dealings.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322377.

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310E: When mutuality required for transactions under recognised multilateral netting agreements, or

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310G: Transactions under netting agreement and effect on certain sections, or

“How netting agreements affect certain rules for company transactions”

Part 16 Liquidations
Creditors' claims

310FApplication of set-off under section 310 to transactions subject to netting agreements

  1. Section 310 does not apply to transactions that are subject to a netting agreement to which sections 310A to 310O apply.

  2. However, a netted balance is to be treated as an amount to which section 310(1) applies if the company that is in liquidation and the other party to the netting agreement also have mutual credits, mutual debts, or other mutual dealings between them that are not subject to the netting agreement.

Notes
  • Section 310F: inserted, on , by section 15 of the Companies Amendment Act 1999 (1999 No 19).