Receiverships Act 1993

16: Validity of acts of receivers

You could also call this:

"What a receiver does is usually okay, even if they weren't appointed correctly"

If you are dealing with a receiver, their actions are generally valid, even if they were not appointed correctly or are not allowed to do certain things. You do not have to worry that what the receiver does is invalid just because of these issues. The receiver's actions are valid unless you know, or should know, that the receiver has problems with their appointment or authority.

If you are entering into a transaction with a receiver, it is valid unless you have knowledge that the receiver was not appointed correctly or does not have the authority to make the transaction. This knowledge could come from your relationship with the receiver or the person who appointed them.

The receiver's ability to act is protected, so you can generally rely on their actions being valid, as long as you do not have reason to believe otherwise.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327723.

Topics:

Money and consumer rights > Consumer protectionBusiness > Industry rules

15: Power to make calls on shares, or

"A receiver can ask shareholders for unpaid money for their shares when a company is in trouble."

17: Consent of mortgagee to sale of property, or

"Asking the court to sell a property when the lender doesn't agree"

16Validity of acts of receivers

Subject to subsection (2), no act of a receiver is invalid merely because the receiver was not validly appointed or is disqualified from acting as a receiver or is not authorised to do the act.
No transaction entered into by a receiver is invalid merely because the receiver was not validly appointed or is disqualified from acting as a receiver or is not authorised to enter into the transaction unless the person dealing with the receiver has, or ought to have, by reason of his or her relationship with the receiver or the person by whom the receiver was appointed, knowledge that the receiver was not validly appointed or was disqualified from acting as a receiver or did not have authority to enter into the transaction.