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Companies Act 1993

Liquidations - Voidable dispositions

296B: Procedure for setting aside dispositions

You could also call this:

“How to challenge and reverse certain company transactions as a liquidator”

If you’re a liquidator and you want to set aside a disposition that can be voided under [section 296A], you need to follow a specific process. First, you must file a notice with the court. Then, you need to serve this notice as soon as you can to the party who received the disposition and anyone else you plan to recover from.

Your notice needs to be in writing and include several important details. You must provide your postal, email, and street addresses. You also need to specify which disposition you want to set aside and describe the property or amount of money you want to recover.

In your notice, you must tell the person that they can object to setting aside the disposition. They can do this by sending you a written notice of objection within 20 working days after you serve them your notice. You need to explain that their objection must include all the reasons why they’re objecting and identify any documents that support their objection.

You also need to let them know that if they don’t object, the disposition will be set aside against them. However, if they do object, you can apply to the court to have the disposition set aside.

If the person doesn’t send you a written objection within 20 working days, the disposition is automatically set aside against them. But if they do object in time, you can still ask the court to set aside the disposition.

Remember, the notice of objection from the other person must include all their reasons for objecting and identify any supporting documents.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS412355.

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Part 16 Liquidations
Voidable dispositions

296BProcedure for setting aside dispositions

  1. A liquidator who wishes to set aside a disposition that is voidable under section 296A must—

  2. file a notice with the court; and
    1. serve the notice as soon as practicable on—
      1. the party to which the disposition was made; and
        1. any other party from whom the liquidator intends to recover.

        2. The notice must—

        3. be in writing; and
          1. state the liquidator's postal, email, and street addresses; and
            1. specify the disposition to be set aside; and
              1. describe the property or state the amount that the liquidator wishes to recover; and
                1. state that the person named in the notice may object to the disposition being set aside by sending to the liquidator a written notice of objection that is received by the liquidator at an address stated in the liquidator’s notice within 20 working days after the notice has been served on that person; and
                  1. state that the written notice of objection must contain full particulars of the reasons for objecting and must identify any documents that evidence or substantiate the reasons for objecting; and
                    1. state that the disposition will be set aside as against the person named in the notice if that person does not object; and
                      1. state that if the person named in the notice does object, the liquidator may apply to the court for the disposition to be set aside.

                        1. The disposition is automatically set aside as against the person on whom the liquidator has served the notice unless that person has sent to the liquidator a written notice of objection that is received by the liquidator at an address stated in the liquidator’s notice within 20 working days after the liquidator's notice has been served on that person.

                        2. The notice of objection must contain full particulars of the reasons for objecting and must identify any documents that evidence or substantiate the reasons for objecting.

                        3. A disposition that is not automatically set aside may still be set aside by the court on the liquidator's application.

                        Notes
                        • Section 296B: inserted, on , by section 53 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).