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Receiverships Act 1993

5: Who may be appointed as receiver

You could also call this:

"Who can be a receiver: a licensed insolvency practitioner who is allowed and not disqualified"

Illustration for Receiverships Act 1993

You can be appointed as a receiver if you are a licensed insolvency practitioner who is allowed to act as a receiver under the Insolvency Practitioners Regulation Act 2019. You must also not be disqualified from being a receiver.

You are disqualified from being a receiver if you are a mortgagee of the property in receivership. You are also disqualified if you have been a director or auditor of the grantor or a related company in the last two years.

There are other reasons you might be disqualified, such as having a direct or indirect interest in shares issued by the grantor, or being a relative of someone who is disqualified. If you know you are disqualified and you still act as a receiver, you can be fined up to $75,000. You can find more information about this in section 8(2) of the Insolvency Practitioners Regulation Act 2019.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327707.

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4: Application, or

"When the Receiverships Act 1993 applies to people in charge of managing companies"

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6: Appointment of receivers under deeds and agreements, or

"Appointing someone to look after property when the owner has agreed in a contract"

5Who may be appointed as receiver

  1. A person may be appointed as a receiver if the person—

  2. is a licensed insolvency practitioner who is permitted to act as a receiver in accordance with the Insolvency Practitioners Regulation Act 2019; and
    1. is not disqualified under subsection (2).

      1. Unless the court orders otherwise, the following persons are disqualified from being appointed or acting as a receiver:

      2. a mortgagee of the property in receivership:
        1. a person who is, or who has, within the 2 years immediately before the commencement of the receivership, been—
          1. a director or an auditor of the grantor or of a related company of the grantor; or
            1. a director of the mortgagee of the property in receivership:
            2. a person who has, or who has had, within the 2 years immediately before the commencement of the receivership,—
              1. a direct interest in a share issued by the grantor; or
                1. an indirect interest in 5% or more of any class of shares issued by the grantor:
                2. if the grantor is a company, a person who has—
                  1. a direct interest in a share issued by a related company of the grantor; or
                    1. an indirect interest in 5% or more of any class of shares issued by a related company of the grantor:
                    2. a person who is a relative (as defined in section 2(1) of the Companies Act 1993) of a person specified in any of paragraphs (b) to (d):
                      1. a person who is disqualified from acting as a receiver by the instrument that confers the power to appoint a receiver:
                        1. a person to whom a prohibition order applies:
                          1. if the property in receivership includes a company, a person who is, or who has been, in the 2 years immediately before the commencement of the receivership, an administrator, a deed administrator, or a liquidator of the company.

                            1. A person commits an offence if—

                            2. the person knows or ought reasonably to know that they are disqualified under subsection (2); and
                              1. the person,—
                                1. with their consent, is appointed as a receiver; or
                                  1. acts as a receiver.

                                  2. A person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $75,000.

                                  3. See also section 8(2) of the Insolvency Practitioners Regulation Act 2019.

                                  Notes
                                  • Section 5: replaced, on , by section 62 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).