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Receiverships Act 1993

38: Special provisions relating to evidence

You could also call this:

"Rules about using past mistakes as evidence against receivers and liquidators"

Illustration for Receiverships Act 1993

If you are a receiver or a liquidator, the court can look at your past actions. The court checks if you did not comply with orders under section 37 or section 286 of the Companies Act 1993 in the last 5 years. This can be evidence that you did not comply with the rules.

If the court made orders against you two or more times, this can be evidence against you. The same applies if people applied for orders against you two or more times and you only complied after they applied. This is evidence that you did not comply with the rules, unless there are special reasons why this is not the case, for the purposes of section 37(6)(a).

The court looks at what happened in the last 5 years when you were a receiver or a liquidator. It checks if applications were made against you under section 37 or section 286 of the Companies Act 1993 and if you complied after the applications were made. This can also be evidence that you did not comply with the rules, for the purposes of section 37(6)(a), unless there are special reasons why this is not the case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327769.

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38Special provisions relating to evidence

  1. Evidence that, within the preceding 5 years while a person was acting as a receiver or as a liquidator, as the case may be,—

  2. the court has, in relation to that person, on 2 or more occasions made an order to comply under section 37; or
    1. the court has, in relation to that person, on 2 or more occasions made an order to comply under section 286 of the Companies Act 1993; or
      1. the court has, in relation to that person, made 1 or more orders to comply under section 37 and has also made 1 or more orders to comply under section 286 of the Companies Act 1993,—
          1. is, in the absence of special reasons to the contrary, evidence of persistent failures to comply for the purposes of section 37(6)(a).

        1. Evidence that, within the preceding 5 years while a person was acting as a receiver or as a liquidator, as the case may be,—

        2. 2 or more applications for an order to comply under section 37 were made in relation to that person; or
          1. 2 or more applications for an order to comply under section 286 of the Companies Act 1993 were made in relation to that person; or
            1. 1 or more applications for an order to comply under section 37 and 1 or more applications for an order to comply under section 286 of the Companies Act 1993 were made in relation to that person—
                1. and, in each case, the person has complied after the making of the application and before the hearing is, in the absence of special reasons to the contrary, evidence of persistent failures to comply for the purposes of section 37(6)(a).