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Receiverships Act 1993

34: Court supervision of receivers

You could also call this:

"The court helps receivers do their job and makes sure they are paid fairly and act correctly."

Illustration for Receiverships Act 1993

If you are a receiver, you can ask the court for directions on how to do your job. The court can give you these directions and can also change them if needed. You can ask the court to decide if the money you are being paid for being a receiver is fair.

If someone thinks a receiver is not being paid a fair amount of money, they can ask the court to review this. The court can decide if the receiver's pay is reasonable and can order them to pay back any extra money they have taken. The court can also decide if a receiver was properly appointed to look after someone's property.

People who can ask the court to make these decisions include the receiver, the person who appointed the receiver, someone who is owed money by the person who appointed the receiver, and someone who has an interest in the property. The court has the power to make these decisions, and this power is in addition to any other powers the court may have.

The court's decisions can be made about things that happened before or after the receiver started their job, and even if the receiver is no longer working. If you are a receiver and you follow the court's directions, you will usually be protected from being sued for anything you did as a receiver. However, the court can decide that you are not protected if it thinks you did something wrong to get the court's direction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327760.

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33: Relief from liability, or

"Help from the court if you're a receiver and didn't do anything wrong"

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35: Court may terminate or limit receivership, or

"The court can stop or limit a receivership if someone asks them to and it's no longer needed."

34Court supervision of receivers

  1. The court may, on the application of a receiver,—

  2. give directions in relation to any matter arising in connection with the performance of the functions of the receiver:
    1. revoke or vary any such directions.

      1. The court may, on the application of a person referred to in subsection (3),—

      2. in respect of any period, review or fix the remuneration of a receiver at a level which is reasonable in the circumstances:
        1. to the extent that an amount retained by a receiver as remuneration is found by the court to be unreasonable in the circumstances, order the receiver to refund the amount:
          1. declare whether or not a receiver was validly appointed in respect of any property or validly entered into possession or assumed control of any property.

            1. Any of the following persons may apply to the court under subsection (2):

            2. the receiver:
              1. the grantor:
                1. a creditor of the grantor:
                  1. a person claiming, through the grantor, an interest in the property in receivership:
                    1. the board of directors of the grantor or, in the case of a grantor that is in liquidation, the board of the grantor at the time the liquidator was appointed:
                      1. if the grantor is a company, a liquidator:
                        1. if the grantor is a person who has been adjudged bankrupt, the Official Assignee of the estate of the grantor.

                          1. The powers given by subsections (1) and (2)—

                          2. are in addition to any other powers the court may exercise under this Act, any other Act, or in its inherent jurisdiction; and
                            1. may be exercised in relation to a matter occurring either before or after the commencement of this Act and whether or not the receiver has ceased to act as receiver when the application is made.

                              1. The court may, on the application of a person referred to in subsection (3), revoke or vary an order made under subsection (2).

                              2. Subject to subsection (7), it is a defence to a claim against a receiver in relation to any act or omission by the receiver that he or she acted or omitted to act in accordance with a direction given under subsection (1).

                              3. The court may, on the application of a person referred to in subsection (3), order that, by reason of the circumstances in which a direction was obtained under subsection (1), a receiver is not entitled to the protection given by subsection (6).