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Companies Act 1993

Voluntary administration - Creditors' meetings generally

239AMA: Creditor’s vote disregarded if administrator considers creditor is related creditor

You could also call this:

“Administrator can disregard votes from creditors they believe are related to the company”

If you’re a creditor in a company’s voluntary administration, the administrator can decide if you’re a related creditor. If they think you are, and you haven’t told them otherwise, they must ignore your vote at creditors’ meetings. They’ll also need to write to you explaining why they think you’re related.

If you don’t agree with the administrator’s decision, you can ask the court to let your vote count. You’ll need to prove to the court that you’re not a related creditor. If you want to do this, you have to apply to the court within 10 working days of getting the administrator’s notice.

The court can order the administrator to count your vote if it agrees you’re not a related creditor. This helps make sure that only votes from independent creditors are counted in important decisions about the company’s future.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS411138.

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Part 15A Voluntary administration
Creditors' meetings generally

239AMACreditor’s vote disregarded if administrator considers creditor is related creditor

  1. If the administrator considers that a creditor that votes on a resolution at a creditors’ meeting is a related creditor, and the creditor has not given notice under section 239AM(2A), the administrator must (unless the court orders otherwise)—

  2. disregard the creditor’s vote; and
    1. give notice in writing to the creditor stating the reasons for the administrator’s view.

      1. The court may, on the application of the creditor, order that the creditor’s vote be taken into account if satisfied that the creditor is not a related creditor.

      2. The creditor must make any application under this section to the court within 10 working days of receiving the notice.

      Notes
      • Section 239AMA: inserted, on , by section 13 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).