Plain language law

New Zealand law explained for everyone

Companies Act 1993

Schedule 13: COVID-19 business debt hibernation

You could also call this:

“Rules for pausing business debts during COVID-19 (now ended)”

Schedule 13 of the Companies Act 1993 used to contain provisions for COVID-19 business debt hibernation. This was a temporary measure to help businesses affected by the COVID-19 pandemic. The schedule outlined rules for how businesses could enter debt hibernation, what protections they would receive, and how creditors could approve arrangements.

This schedule is no longer in effect. All of its clauses were repealed on 31 May 2022. This means the COVID-19 business debt hibernation scheme is no longer available for companies to use.

The repeal of this schedule suggests that the government believed the acute economic impacts of COVID-19 had lessened enough by May 2022 that this special business protection was no longer needed.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS349296.

Topics:
Business > Industry rules
Business > Fair trading
Previous

Schedule 12: Safe harbour provisions relating to outbreak of COVID-19, or

“Company protections during COVID-19 (no longer in effect)”

Next

Schedule 14: List of relevant Acts and registers, or

“Acts and their official registers for different types of organisations in New Zealand”

13COVID-19 business debt hibernation (Repealed)

1Preliminary provisions

1Purposes (Repealed)

    Notes
    • Schedule 13 clause 1: repealed, on the close of , by section 395A(3).

    2Overview of schedule (Repealed)

      Notes
      • Schedule 13 clause 2: repealed, on the close of , by section 395A(3).

      3Application of schedule (Repealed)

        Notes
        • Schedule 13 clause 3: repealed, on the close of , by section 395A(3).

        4Interpretation (Repealed)

          Notes
          • Schedule 13 clause 4: repealed, on the close of , by section 395A(3).

          2Board of entity may agree to enter into BDH

          5Board of entity may agree to entity entering into BDH (Repealed)

            Notes
            • Schedule 13 clause 5: repealed, on the close of , by section 395A(3).

            6Entity may enter BDH by delivering notice to Registrar (Repealed)

              Notes
              • Schedule 13 clause 6: repealed, on the close of , by section 395A(3).

              7Copy of notice must be sent to creditors (Repealed)

                Notes
                • Schedule 13 clause 7: repealed, on the close of , by section 395A(3).

                8Restriction on entering into BDH more than once (Repealed)

                  Notes
                  • Schedule 13 clause 8: repealed, on the close of , by section 395A(3).

                  9Entity must develop proposal for arrangement and send notice to creditors (Repealed)

                    Notes
                    • Schedule 13 clause 9: repealed, on the close of , by section 395A(3).

                    10Contents of notice (Repealed)

                      Notes
                      • Schedule 13 clause 10: repealed, on the close of , by section 395A(3).

                      11Creditors’ meeting is voluntary (Repealed)

                        Notes
                        • Schedule 13 clause 11: repealed, on the close of , by section 395A(3).

                        12Effect of irregularity or failure (Repealed)

                          Notes
                          • Schedule 13 clause 12: repealed, on the close of , by section 395A(3).

                          3When protection applies

                          13Protection period (Repealed)

                            Notes
                            • Schedule 13 clause 13: repealed, on the close of , by section 395A(3).

                            14When protections start to apply (and entity enters into BDH) (Repealed)

                              Notes
                              • Schedule 13 clause 14: repealed, on the close of , by section 395A(3).

                              15Protections generally apply for 1 month and additional 6 months if creditors approve arrangement (Repealed)

                                Notes
                                • Schedule 13 clause 15: repealed, on the close of , by section 395A(3).

                                16Protections cease to apply if conditions not complied with (Repealed)

                                  Notes
                                  • Schedule 13 clause 16: repealed, on the close of , by section 395A(3).

                                  17Protections cease to apply if entity fails to send new certificates on request (Repealed)

                                    Notes
                                    • Schedule 13 clause 17: repealed, on the close of , by section 395A(3).

                                    18Protections cease if entity subsequently becomes subject to compromise or enters voluntary administration, receivership, or liquidation (Repealed)

                                      Notes
                                      • Schedule 13 clause 18: repealed, on the close of , by section 395A(3).

                                      19Entity may decide to come out of BDH early (Repealed)

                                        Notes
                                        • Schedule 13 clause 19: repealed, on the close of , by section 395A(3).

                                        20Protections subject to approval (Repealed)

                                          Notes
                                          • Schedule 13 clause 20: repealed, on the close of , by section 395A(3).

                                          21Protections do not apply to general security holders (Repealed)

                                            Notes
                                            • Schedule 13 clause 21: repealed, on the close of , by section 395A(3).

                                            22Protections do not apply to excluded debts (Repealed)

                                              Notes
                                              • Schedule 13 clause 22: repealed, on the close of , by section 395A(3).

                                              4Process for approval of arrangement and its effects

                                              Approval of arrangement

                                              23When arrangement is approved (Repealed)

                                                Notes
                                                • Schedule 13 clause 23: repealed, on the close of , by section 395A(3).

                                                24Approval needs majority in number and value of creditors (Repealed)

                                                  Notes
                                                  • Schedule 13 clause 24: repealed, on the close of , by section 395A(3).

                                                  25Duty to receive and count votes (Repealed)

                                                    Notes
                                                    • Schedule 13 clause 25: repealed, on the close of , by section 395A(3).

                                                    26Amounts must not be determined by reference to class of creditor (Repealed)

                                                      Notes
                                                      • Schedule 13 clause 26: repealed, on the close of , by section 395A(3).

                                                      27Board of entity must prepare certificate of result of vote (Repealed)

                                                        Notes
                                                        • Schedule 13 clause 27: repealed, on the close of , by section 395A(3).

                                                        28Board must ensure creditors and Registrar are notified of result of vote (Repealed)

                                                          Notes
                                                          • Schedule 13 clause 28: repealed, on the close of , by section 395A(3).

                                                          Effect of approved arrangement

                                                          29Arrangement is binding (Repealed)

                                                            Notes
                                                            • Schedule 13 clause 29: repealed, on the close of , by section 395A(3).

                                                            30Restriction on effect of arrangement (Repealed)

                                                              Notes
                                                              • Schedule 13 clause 30: repealed, on the close of , by section 395A(3).

                                                              Variation of arrangement

                                                              31Variation of arrangement (Repealed)

                                                                Notes
                                                                • Schedule 13 clause 31: repealed, on the close of , by section 395A(3).

                                                                Related creditors

                                                                32Related creditor’s vote to be disregarded unless court orders otherwise (Repealed)

                                                                  Notes
                                                                  • Schedule 13 clause 32: repealed, on the close of , by section 395A(3).

                                                                  33Creditor’s vote disregarded if entity considers creditor is related creditor (Repealed)

                                                                    Notes
                                                                    • Schedule 13 clause 33: repealed, on the close of , by section 395A(3).

                                                                    34Further powers where court orders creditor’s vote be taken into account (Repealed)

                                                                      Notes
                                                                      • Schedule 13 clause 34: repealed, on the close of , by section 395A(3).

                                                                      35Power of court where outcome of voting determined by related creditor (Repealed)

                                                                        Notes
                                                                        • Schedule 13 clause 35: repealed, on the close of , by section 395A(3).

                                                                        Other powers of court

                                                                        36Powers of court (Repealed)

                                                                          Notes
                                                                          • Schedule 13 clause 36: repealed, on the close of , by section 395A(3).

                                                                          37Court may order that creditor is not bound (Repealed)

                                                                            Notes
                                                                            • Schedule 13 clause 37: repealed, on the close of , by section 395A(3).

                                                                            5Protections for entity in BDH

                                                                            38Charge unenforceable (Repealed)

                                                                              Notes
                                                                              • Schedule 13 clause 38: repealed, on the close of , by section 395A(3).

                                                                              39Owner or lessor must not recover property used by entity (Repealed)

                                                                                Notes
                                                                                • Schedule 13 clause 39: repealed, on the close of , by section 395A(3).

                                                                                40Proceeding must not be begun or continued (Repealed)

                                                                                  Notes
                                                                                  • Schedule 13 clause 40: repealed, on the close of , by section 395A(3).

                                                                                  41Entity not liable in damages for refusing consent (Repealed)

                                                                                    Notes
                                                                                    • Schedule 13 clause 41: repealed, on the close of , by section 395A(3).

                                                                                    42Enforcement process halted (Repealed)

                                                                                      Notes
                                                                                      • Schedule 13 clause 42: repealed, on the close of , by section 395A(3).

                                                                                      43Duties of court officer in relation to entity's property (Repealed)

                                                                                        Notes
                                                                                        • Schedule 13 clause 43: repealed, on the close of , by section 395A(3).

                                                                                        44Certain guarantees may not be enforced during protection period (Repealed)

                                                                                          Notes
                                                                                          • Schedule 13 clause 44: repealed, on the close of , by section 395A(3).

                                                                                          6Rights of secured creditor, owner, or lessor

                                                                                          45If enforcement of charges begins before entity enters into BDH (Repealed)

                                                                                            Notes
                                                                                            • Schedule 13 clause 45: repealed, on the close of , by section 395A(3).

                                                                                            46Charge over perishable property (Repealed)

                                                                                              Notes
                                                                                              • Schedule 13 clause 46: repealed, on the close of , by section 395A(3).

                                                                                              47Court may limit powers of secured creditor, etc, in relation to property subject to charge (Repealed)

                                                                                                Notes
                                                                                                • Schedule 13 clause 47: repealed, on the close of , by section 395A(3).

                                                                                                48Giving notice under security agreement (Repealed)

                                                                                                  Notes
                                                                                                  • Schedule 13 clause 48: repealed, on the close of , by section 395A(3).

                                                                                                  49If recovery of property begins before protection period (Repealed)

                                                                                                    Notes
                                                                                                    • Schedule 13 clause 49: repealed, on the close of , by section 395A(3)

                                                                                                    50Recovering perishable property (Repealed)

                                                                                                      Notes
                                                                                                      • Schedule 13 clause 50: repealed, on the close of , by section 395A(3).

                                                                                                      51Court may limit powers of receiver, etc, in relation to property used by entity (Repealed)

                                                                                                        Notes
                                                                                                        • Schedule 13 clause 51: repealed, on the close of , by section 395A(3).

                                                                                                        52Giving notice under agreement about property (Repealed)

                                                                                                          Notes
                                                                                                          • Schedule 13 clause 52: repealed, on the close of , by section 395A(3).

                                                                                                          7Exemption from provisions about voidable transactions and dispositions that prejudice creditors

                                                                                                          53When provisions do not apply (Repealed)

                                                                                                            Notes
                                                                                                            • Schedule 13 clause 53: repealed, on the close of , by section 395A(3).

                                                                                                            8Procedure for meeting

                                                                                                            54Part applies only if creditors’ meeting is held (Repealed)

                                                                                                              Notes
                                                                                                              • Schedule 13 clause 54: repealed, on the close of , by section 395A(3).

                                                                                                              55Methods of holding meetings (Repealed)

                                                                                                                Notes
                                                                                                                • Schedule 13 clause 55: repealed, on the close of , by section 395A(3).

                                                                                                                56Adjournment of meeting (Repealed)

                                                                                                                  Notes
                                                                                                                  • Schedule 13 clause 56: repealed, on the close of , by section 395A(3).

                                                                                                                  57Chairperson (Repealed)

                                                                                                                    Notes
                                                                                                                    • Schedule 13 clause 57: repealed, on the close of , by section 395A(3).

                                                                                                                    58Quorum (Repealed)

                                                                                                                      Notes
                                                                                                                      • Schedule 13 clause 58: repealed, on the close of , by section 395A(3).

                                                                                                                      59Proxies (Repealed)

                                                                                                                        Notes
                                                                                                                        • Schedule 13 clause 59: repealed, on the close of , by section 395A(3).

                                                                                                                        60Postal or electronic votes (Repealed)

                                                                                                                          Notes
                                                                                                                          • Schedule 13 clause 60: repealed, on the close of , by section 395A(3).

                                                                                                                          61Proposed arrangement may not be varied at meeting (Repealed)

                                                                                                                            Notes
                                                                                                                            • Schedule 13 clause 61: repealed, on the close of , by section 395A(3).

                                                                                                                            62Bodies corporate may act by representatives (Repealed)

                                                                                                                              Notes
                                                                                                                              • Schedule 13 clause 62: repealed, on the close of , by section 395A(3).

                                                                                                                              63Other proceedings (Repealed)

                                                                                                                                Notes
                                                                                                                                • Schedule 13 clause 63: repealed, on the close of , by section 395A(3).

                                                                                                                                64Effect of irregularity or defect (Repealed)

                                                                                                                                  Notes
                                                                                                                                  • Schedule 13 clause 64: repealed, on the close of , by section 395A(3).

                                                                                                                                  9Miscellaneous provisions

                                                                                                                                  65How notices or documents must be sent to creditors (Repealed)

                                                                                                                                    Notes
                                                                                                                                    • Schedule 13 clause 65: repealed, on the close of , by section 395A(3).

                                                                                                                                    66Effect of actions under schedule (Repealed)

                                                                                                                                      Notes
                                                                                                                                      • Schedule 13 clause 66: repealed, on the close of , by section 395A(3).

                                                                                                                                      67Right for new advance of money or credit may not be enforced (Repealed)

                                                                                                                                        Notes
                                                                                                                                        • Schedule 13 clause 67: repealed, on the close of , by section 395A(3).

                                                                                                                                        68Burden of proof (Repealed)

                                                                                                                                          Notes
                                                                                                                                          • Schedule 13 clause 68: repealed, on the close of , by section 395A(3).

                                                                                                                                          69Registrar must register or publicly notify information about notices (Repealed)

                                                                                                                                            Notes
                                                                                                                                            • Schedule 13 clause 69: repealed, on the close of , by section 395A(3).

                                                                                                                                            70Schedule does not prevent subsequent compromise, voluntary administration, receivership, or liquidation (Repealed)

                                                                                                                                              Notes
                                                                                                                                              • Schedule 13 clause 70: repealed, on the close of , by section 395A(3).

                                                                                                                                              71Effect of arrangement in liquidation of entity (Repealed)

                                                                                                                                                Notes
                                                                                                                                                • Schedule 13 clause 71: repealed, on the close of , by section 395A(3).

                                                                                                                                                72Crown not prevented from voting to approve arrangement (Repealed)

                                                                                                                                                  Notes
                                                                                                                                                  • Schedule 13 clause 72: repealed, on the close of , by section 395A(3).

                                                                                                                                                  73Schedule applies despite anything contrary in Construction Contracts Act 2002 (Repealed)

                                                                                                                                                    Notes
                                                                                                                                                    • Schedule 13 clause 73: repealed, on the close of , by section 395A(3).

                                                                                                                                                    74Arrangement treated as instalment arrangement under Tax Administration Act 1994 (Repealed)

                                                                                                                                                      Notes
                                                                                                                                                      • Schedule 13 clause 74: repealed, on the close of , by section 395A(3).