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Incorporated Societies Act 2022

Enforcement - Banning order

173: Liability for contravening banning order

You could also call this:

"Breaking a banning order can make you personally responsible for paying the society's debts."

Illustration for Incorporated Societies Act 2022

You can be personally liable if you break a banning order. This means you may have to pay a liquidator for the society's unpaid debts. You may also have to pay a creditor for a debt the society incurred while you were acting. You should look at section 159 to see what happens if you break a banning order. This is because breaking a banning order is also an offence. You will be liable for debts if you act against the order. If you incur debts while breaking the order, you will have to pay them. This applies to debts owed to creditors and to liquidators. You must follow the banning order to avoid being liable.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS101063.

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Part 4Enforcement
Banning order

173Liability for contravening banning order

  1. A person who acts in contravention of an order made under this subpart is personally liable to—

  2. a liquidator of the society for every unpaid debt incurred by the society while that person was so acting; and
    1. a creditor of the society for a debt to that creditor incurred by the society while that person was so acting.

      1. See also section 159 (offence for contravening a banning order).