Plain language law

New Zealand law explained for everyone

Companies Act 1993

Voluntary administration - Powers of court

239ADUA: Meaning of failure to comply

You could also call this:

“What it means when administrators don't follow the rules”

In this part of the law, we’re talking about what it means when someone doesn’t follow the rules. This applies to people called administrators or deed administrators.

If you’re an administrator or deed administrator, you have to follow certain rules. These rules can come from laws, general legal principles, or orders from a court. If you don’t follow these rules, it’s called a “failure to comply”.

Sometimes, there might be a court case about whether someone followed the rules or not. In these cases, if a court has already decided that someone didn’t follow the rules, this decision can be used as evidence. This means that if one court has found that someone didn’t follow the rules, another court can accept this as true without having to prove it again.

To show that a court has made this decision, you can use an official document from the court. This document will have the court’s seal on it, which proves it’s real and official.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS411461.

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Part 15A Voluntary administration
Powers of court

239ADUAMeaning of failure to comply

  1. In section 239ADV, failure to comply means a person’s failure to comply with an enactment, a rule of law, or a court order to the extent that the enactment, rule, or order applies to the person in the person's capacity as an administrator or a deed administrator.

  2. In proceedings under section 239ADV,—

  3. a finding of any fact made in proceedings before the District Court or High Court for an offence under this Act or any other enactment that there was a failure to comply is prima facie evidence of that fact:
    1. a finding described in paragraph (a) may be proved by production of a document under the seal of the court in which the finding was made.

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      Notes
      • Section 239ADUA: inserted, on , by section 25 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).