Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
239AP: Administrator must table documents at first creditors' meeting
or “Administrator must share key documents at initial creditors' meeting”
You could also call this:

“Rules for disclosing conflicts of interest when becoming a company administrator”

You need to know about something called an interests statement. This is a special document that an insolvency practitioner must write when they become an administrator for a company in voluntary administration.

In this statement, the practitioner has to tell everyone about any situations that might make it hard for them to be fair and independent as an administrator. They need to explain any relationships or facts that could create a conflict of interest.

If there’s anything that would usually stop them from being an administrator or an insolvency practitioner, they have to mention it. They also need to describe how they plan to handle any conflicts of interest.

When the practitioner writes this statement for the first time, they have to do thorough research to make sure they don’t miss anything important. But if they’re updating a previous statement, they only need to add new information they’ve learned since the last one.

The interests statement must be written down, dated, and signed by the insolvency practitioner. It’s a way to make sure everyone knows about any potential problems before the practitioner starts their job as an administrator.

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 It might be out of date or be missing some parts.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: 239AQ: Functions of creditors' committee

or “What a creditors' committee does when a company is being managed by an administrator”
Next

Part 15A Voluntary administration
First creditors' meeting to appoint creditors' committee

239APARequirements for interests statement

  1. This section sets out the requirements for the interests statement referred to in sections 239R(2)(b)(ii), 239AP(1)(b), 239AU(3)(aa), and 239ACZA(1).

  2. The interests statement must disclose—

  3. any circumstance, relationship, or other fact that creates, or could reasonably be perceived as creating, a conflict of interest for the insolvency practitioner in relation to the independence of the insolvency practitioner’s role as the administrator, including anything that would, but for a court order to the contrary, have disqualified the person—
    1. from being appointed as or acting as the administrator (see section 239F(2)); or
      1. from being a licensed insolvency practitioner; and
      2. the nature of any actual or perceived conflict of interest created by that circumstance, relationship, or other fact; and
        1. how the insolvency practitioner intends to manage any actual or perceived conflict of interest.

          1. In preparing an interests statement for the purposes of section 239R(2)(b)(ii) or 239AP(1)(b), the insolvency practitioner must make any inquiries that are reasonably necessary for ensuring that the interests statement is complete.

          2. In preparing an interests statement for the purposes of section 239AU(3)(aa) or 239ACZA(1), the insolvency practitioner need include only the information required under subsection (2) that relates to circumstances, relationships, or other facts that the insolvency practitioner has become aware of during the period since they last prepared an interests statement.

          3. The interests statement must be in writing and be dated and signed by the insolvency practitioner.

          Notes
          • Section 239APA: inserted, on , by section 14 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).