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Companies Act 1993

Liquidations - Voidable dispositions

296C: Other orders

You could also call this:

“Court can order property return or payment if company transfers are reversed”

If a company’s disposition (transfer of property) is set aside under [section 296B], the court can make several orders. These orders can include:

You might have to give back to the company any property that was transferred away. This includes the actual property, any money made from selling it, or something else that represents the value of that money.

The court can tell you to pay the company an amount that they think is fair. This amount would represent the benefits you got because of the transfer.

The court can cancel all or part of any debt that the company owes.

You might need to provide security (like a guarantee) to make sure you follow through with any of these orders.

The court can decide how much you can claim as a creditor in the liquidation process after the transfer has been set aside.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS412447.

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296B: Procedure for setting aside dispositions, or

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296D: Additional provisions relating to setting aside dispositions, or

“Rules for protecting innocent buyers when company property transfers are challenged”

Part 16 Liquidations
Voidable dispositions

296COther orders

  1. If a disposition is set aside under section 296B, the court may make 1 or more of the following orders:

  2. an order that a person transfer to the company—
    1. property that the company disposed of:
      1. any proceeds of property referred to in subparagraph (i):
        1. property that, in the court’s opinion, fairly represents the application of proceeds referred to in subparagraph (ii):
        2. an order that a person pay to the company an amount that, in the court's opinion, fairly represents some or all of the benefits that the person has received because of the disposition:
          1. an order releasing, in whole or in part, a charge given by the company:
            1. an order requiring security to be given for the discharge of an order made under this section:
              1. an order specifying the extent to which a person affected by the setting aside of a disposition by an order made under this section is entitled to claim as a creditor in the liquidation.

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