248 Effect of commencement of liquidation

(1)

With effect from the commencement of the liquidation of a company,—

(a)

the liquidator has custody and control of the company’s assets:

(b)

the directors remain in office but cease to have powers, functions, or duties other than those required or permitted to be exercised by this Part:

(c)

unless the liquidator agrees or the court orders otherwise, a person must not—

(i)

commence or continue legal proceedings against the company or in relation to its property; or

(ii)

exercise or enforce, or continue to exercise or enforce, a right or remedy over or against property of the company:

(d)

unless the court orders otherwise, a share in the company must not be transferred:

(e)

an alteration must not be made to the rights or liabilities of a shareholder of the company:

(f)

a shareholder must not exercise a power under the constitution of the company or this Act except for the purposes of this Part:

(g)

the constitution of the company must not be altered.

(2)

Subsection (1) does not affect the right of a secured creditor, subject to section 305, to take possession of, and realise or otherwise deal with, property of the company over which that creditor has a charge.

(3)

This section is subject to section 139J(1) to (3) of the Reserve Bank of New Zealand Act 1989.

Section 248(3): inserted, on 10 December 2013, by section 12 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).