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Receiverships Act 1993

37: Orders to enforce receiver's duties

You could also call this:

"Getting help if a receiver is not doing their job"

Illustration for Receiverships Act 1993

If a receiver is not doing their job, you can ask the court for help. You can do this if you are the Registrar, a receiver, a person who wants to be a receiver, the grantor, a person with an interest in the property, a creditor, a guarantor, or a liquidator. If the receiver is an accountant, you can also ask the association of accountants to help. The court can make the receiver do their job, or remove them from their position.

The court can also stop someone from being a receiver if they are not doing their job properly. This is called a prohibition order. You can find more information about what a licensed insolvency practitioner is by looking at section 8 of the Insolvency Practitioners Regulation Act 2019. The court can also give a copy of the order to the accredited bodies, as defined in the Insolvency Practitioners Regulation Act 2019.

If the court makes an order, a copy of the order must be given to the Registrar. The Registrar must then give a copy of the order to each accredited body. You can also look at section 5(1) of the Financial Reporting Act 2013 to understand what a qualified statutory accountant is.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327767.

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37Orders to enforce receiver's duties

  1. An application for an order under this section may be made by—

  2. the Registrar:
    1. a receiver:
      1. a person seeking appointment as a receiver:
        1. the grantor:
          1. a person with an interest in the property in receivership:
            1. a creditor of the grantor:
              1. a guarantor of an obligation of the grantor:
                1. if the grantor is a company, a liquidator of the grantor:
                  1. if the receiver is a qualified statutory accountant (within the meaning of section 5(1) of the Financial Reporting Act 2013), a member of the governing body of the association of accountants of which the qualified statutory accountant is a member:
                    1. if the receiver is a barrister and solicitor or a solicitor, the President of the New Zealand Law Society:
                      1. if the grantor is a person who has been adjudged bankrupt, the Official Assignee of the estate of the grantor.

                        1. An application for an order under this section may be made by a receiver of the property of a grantor in relation to a failure to comply by another receiver of the property of the grantor.

                        2. No application may be made to the court in relation to a failure to comply unless notice of the failure to comply has been served on the receiver not less than 7 days before the date of the application and, as at the date of the application, there is a continuing failure to comply.

                        3. If the court is satisfied that there is, or has been, a failure to comply, the court may—

                        4. relieve the receiver of the duty to comply wholly or in part; or
                          1. order the receiver to comply to the extent specified in the order; or
                            1. remove the receiver from office; or
                              1. make a prohibition order.

                                1. The court may, in respect of a person who is or becomes disqualified under section 5(2) from becoming or remaining a receiver,—

                                2. remove the person from office; or
                                  1. order that the person may be appointed and act or may continue to act as a receiver, despite section 5(2).

                                    1. If the court is satisfied that a person is unfit to act as a receiver because of persistent failures to comply or the seriousness of a failure to comply, the court must make a prohibition order.

                                    2. The period of a prohibition order under this section is a matter for the discretion of the court, and the court may make a prohibition order permanent.

                                    3. However, the court may make a prohibition order permanent, or for a period longer than 10 years, only in the most serious of cases for which an order may be made.

                                    4. A person to whom a prohibition order applies—

                                    5. must not act (or continue to act) as an insolvency practitioner; and
                                      1. must be treated as if they are not a licensed insolvency practitioner (see section 8 of the Insolvency Practitioners Regulation Act 2019).

                                        1. In making an order under this section the court may, if it thinks fit,—

                                        2. make an order extending the time for compliance:
                                          1. impose a term or condition:
                                            1. make an ancillary order.

                                              1. A copy of every order made under this section must be delivered by the applicant to the Registrar before the end of the working day after the day on which the order was made.

                                              2. The Registrar must provide a copy of the order to each accredited body (within the meaning of the Insolvency Practitioners Regulation Act 2019) before the end of the working day after the day on which the Registrar receives a copy of the order.

                                              Notes
                                              • Section 37(1)(i): replaced, on , by section 17 of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 37(4): replaced, on , by section 74(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(5): replaced, on , by section 74(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(6): replaced, on , by section 74(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(6A): inserted, on , by section 74(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(6B): inserted, on , by section 74(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(7): replaced, on , by section 74(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(9): replaced, on , by section 74(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).
                                              • Section 37(10): inserted, on , by section 74(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).