Plain language law

New Zealand law explained for everyone

Companies Act 1993

Liquidations - The process of liquidation

245C: Further powers where court orders creditor’s vote be taken into account

You could also call this:

“Court's additional powers after ordering a creditor's vote to be counted”

If a court tells you that a creditor’s vote should be counted, it can do a few more things. The court can say that the decision should be cancelled or treated as if it passed. It can also ask for a new meeting to talk about and vote on the decision again. The court might even say that the creditor’s vote should count for changing the decision a bit. If needed, the court can make other orders too.

It’s important to know that even if someone asks the court to look at a vote, the result of the vote still counts unless the court says it doesn’t. This means the decision stands until the court changes it.

When the court does these things, it’s following rules in other parts of the law. These rules are in section 245A and section 245B of the same law.

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 It might be out of date or be missing some parts.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=LMS412076.

Topics:
Business > Industry rules
Business > Fair trading
Previous

245B: Creditor’s vote disregarded if liquidator considers creditor is related creditor, or

“Liquidator can ignore votes from creditors they think are connected to the company”

Next

245D: Power of court where outcome of voting at meeting of creditors determined by related creditor, or

“Court can intervene if related creditor unfairly influences vote during company liquidation”

Part 16 Liquidations
The process of liquidation

245CFurther powers where court orders creditor’s vote be taken into account

  1. If the court orders, under section 245A or 245B, 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 245A or 245B, the outcome of the vote on the resolution is valid and effective unless the court orders otherwise.

          Notes
          • Section 245C: inserted, on , by section 37 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).