Insolvency Amendment Act 2004

  • repealed
  • Insolvency Amendment Act 2004: repealed, on 3 December 2007, by section 443(1) of the Insolvency Act 2006 (2006 No 55)

Reprint
as at 3 December 2007

Insolvency Amendment Act 2004

Public Act2004 No 11
Date of assent30 March 2004
  • Insolvency Amendment Act 2004: repealed, on 3 December 2007, by section 443(1) of the Insolvency Act 2006 (2006 No 55).


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.


The Parliament of New Zealand enacts as follows:

1 Title
  • (1) This Act is the Insolvency Amendment Act 2004.

    (2) In this Act, the Insolvency Act 1967 is called the principal Act.

2 Commencement
  • This Act comes into force on the 60th day after the date on which it receives the Royal assent.

3 No lien over bankrupt's books, etc
  • Section 73(2) of the principal Act is amended by omitting the words subparagraph (iii) of paragraph (d) of subsection (1) of section 104 of this Act, and substituting the words section 104(1)(d)(v).

4 Priorities
  • (1) Section 104(1) of the principal Act is amended by repealing paragraph (d), and substituting the following paragraph:

    • (d) fourthly, in payment rateably of,—

      • (i) subject to subsection (1A), all unpaid wages or salary of any employee, whether or not earned wholly or in part by way of commission, and whether payable for time or for piece work, in respect of services provided to the bankrupt during the 4 months before the adjudication:

      • (ii) subject to subsection (1A), any holiday pay payable to an employee (or, if the employee has died, to any other person in the employee's right) on the termination of the employment before or by reason of the adjudication:

      • (iii) subject to subsection (1A), any compensation for redundancy owed to an employee that accrues before or by reason of the adjudication:

      • (iv) subject to subsection (1A), any reimbursement or payment provided for, or ordered by, the Employment Relations Authority, the Employment Court, or the Court of Appeal under section 123(b) or section 128 of the Employment Relations Act 2000, to the extent that the reimbursement or payment does not relate to any matter set out in section 123(c) of the Employment Relations Act 2000, in respect of wages or other money or remuneration lost during the 4 months before the adjudication:

      • (v) all sums payable under section 73(2):

      • (vi) subject to subsection (1A), all amounts payable to the Commissioner of Inland Revenue in accordance with section 163(1) of the Child Support Act 1991:

      • (vii) subject to subsection (1A), all amounts payable to the Commissioner of Inland Revenue in accordance with section 167(2) of the Tax Administration Act 1994 as applied by section 25 of the Student Loan Scheme Act 1992:.

    (2) Section 104(1)(e)(ii) of the principal Act is repealed.

    (3) Section 104 of the principal Act is amended by inserting, after subsection (1), the following subsections:

    • (1A) The total sum to which priority is to be given under any, or all, of subparagraphs (1)(d)(i) to (iv), (vi), and (vii) must not, in the case of any one employee, exceed $15,000 or any greater amount that is prescribed under subsection (1B) at the date of adjudication.

    • (1B) The sum stated in subsection (1A) must be adjusted as follows:

      • (a) subject to paragraph (d), an adjustment must be made, by the Governor-General by Order in Council, after the 3-year period starting on 1 July 2003 and ending on 30 June 2006 and after every 3-year period following that (an adjustment period):

      • (b) subject to paragraph (d), the Order in Council must be made within 3 months of the end of an adjustment period:

      • (c) each adjustment must reflect any overall percentage increase, over the relevant adjustment period, in average weekly earnings (total, private sector), calculated by reference to the last Quarterly Employment Survey published by Statistics New Zealand (or, if that survey ceases to be published, a survey certified by the Government Statistician as an equivalent to that survey) within the relevant adjustment period:

      • (d) if, in an adjustment period, there is no change, or an overall decrease, in the percentage movement in average weekly earnings (total, private sector), as so calculated, no adjustment may be made for that adjustment period:

      • (e) if, in accordance with paragraph (d), no adjustment is made, the next adjustment made for any succeeding adjustment period must reflect any overall percentage increase in average weekly earnings (total, private sector) between the date of the last adjustment and the end of the relevant adjustment period for which the adjustment is to be made:

      • (f) all adjustments are cumulative and must be rounded to the nearest $20:

      • (g) any correction to a Quarterly Employment Survey upon which an adjustment is based must be disregarded until the adjustment that takes effect in the following adjustment period which must reflect the corrected information in the calculation of that adjustment and must otherwise be made in accordance with this section.

    (4) Section 104(2) of the principal Act is amended by omitting the words servant or worker wherever they occur, and substituting in each case the word employee.

    (5) Section 104(3) of the principal Act is amended by—

    • (a) omitting the words For the purpose of paragraph (d) of subsection (1) of this section, and substituting the words In this section ; and

    • (b) inserting, before paragraph (a), the following paragraph:

    • (aa) employee means any person of any age employed by an employer to do any work for hire or reward under a contract of service (including a homeworker as defined in section 5 of the Employment Relations Act 2000):.

    (6) Section 104 of the principal Act is amended by adding the following subsection:

    • (5) This section, as in force on the date on which a person is adjudicated bankrupt, continues to apply to that bankruptcy regardless of any amendment to this section that comes into force after the date on which the person is adjudicated bankrupt.

Consequential repeal

5 Insolvency Amendment Act 1978
  • The Insolvency Amendment Act 1978 (1978 No 99) is repealed.


Contents

  • 1General

  • 2About this eprint

  • 3List of amendments incorporated in this eprint (most recent first)


Notes
1 General
  • This is an eprint of the Insolvency Amendment Act 2004. It incorporates all the amendments to the Insolvency Amendment Act 2004 as at 3 December 2007. The list of amendments at the end of these notes specifies all the amendments incorporated into this eprint since 3 September 2007. Relevant provisions of any amending enactments that contain transitional, savings, or application provisions are also included, after the Principal enactment, in chronological order.

2 About this eprint
  • This eprint has not been officialised. For more information about officialisation, please see "Making online legislation official" under "Status of legislation on this site" in the About section of this website.

3 List of amendments incorporated in this eprint (most recent first)