Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
239AMA: Creditor’s vote disregarded if administrator considers creditor is related creditor
or “Administrator can disregard votes from creditors they believe are related to the company”
You could also call this:

“Court can make decisions about creditor votes and company meetings”

If the court tells you to count a creditor’s vote, it can do more than just that. The court can say the decision is cancelled or that it has passed. It can also tell everyone to have a new meeting to think about and vote on the decision again. The court might even say to count the creditor’s vote on changing the decision a bit. Really, the court can make any orders it thinks are needed to sort things out.

Even if someone asks the court to look at the vote, the result of the vote still counts unless the court says it doesn’t. This means that what everyone decided stays true until the court changes it.

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 It might be out of date or be missing some parts.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

Next up: 239AMC: Power of court where outcome of voting at creditors’ meeting determined by related creditor

or “Court can change voting outcome if related creditor influenced result”
Next

Part 15A Voluntary administration
Creditors' meetings generally

239AMBFurther powers where court orders creditor’s vote be taken into account

  1. If the court orders, under section 239AM or 239AMA, that a creditor’s vote be taken into account, the court may also—

  2. order that the resolution be set aside or treated as having passed:
    1. order that a new meeting be held to consider and vote on the resolution:
      1. order that the creditor’s vote on a resolution to vary or amend the resolution be taken into account:
        1. make any other orders that the court thinks necessary.

          1. Despite any application under section 239AM or 239AMA, the outcome of the vote on the resolution is valid and effective unless the court orders otherwise.

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