Companies Act 1993

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
286 Orders to enforce liquidator’s duties

(1)

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

(a)

a liquidator:

(b)

a person seeking appointment as a liquidator:

(c)

a liquidation committee:

(d)

a creditor, shareholder, other entitled person, or a director of the company in liquidation:

(e)

a receiver appointed in relation to property of the company in liquidation:

(f)

if the liquidator 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:

(g)

if the liquidator is a barrister and solicitor or a solicitor, the President of the New Zealand Law Society:

(h)

an Official Assignee:

(i)

the Registrar.

(2)

No application may be made to a court by a person other than a liquidator in relation to a failure to comply unless notice of the failure to comply has been served on the liquidator not less than 5 working 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—

(a)

relieve the liquidator of the duty to comply wholly or in part; or

(b)

order the liquidator to comply to the extent specified in the order; or

(c)

remove the liquidator from office; or

(d)

make a prohibition order.

(4)

A court may, in relation to a person who is or becomes disqualified under section 280(2) from becoming or remaining a liquidator,—

(a)

remove the person from office; or

(b)

order that the person may be appointed and act, or may continue to act, as a liquidator, despite section 280(2).

(5)

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

(5A)

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.

(5B)

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.

(6)

A person to whom a prohibition order applies—

(a)

must not act (or continue to act) as an insolvency practitioner; and

(b)

must be treated as if they are not a licensed insolvency practitioner (see section 8 of the Insolvency Practitioners Regulation Act 2019).

(7)

Evidence that, on 2 or more occasions,—

(a)

a court has made an order to comply under this section in respect of the same person; or

(b)

an application for an order to comply under this section has been made in respect of the same person and that 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 this section.

(8)

In making an order under this section a court may, if it thinks fit,—

(a)

make an order extending the time for compliance; or

(b)

impose a term or condition; or

(c)

make an ancillary order.

(9)

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.

(10)

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.

Section 286(1)(f): replaced, on 1 July 2015, by section 17 of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 286(1)(i): inserted, on 1 September 2020, by section 52(1) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(3): replaced, on 1 September 2020, by section 52(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(4): replaced, on 1 September 2020, by section 52(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(5): replaced, on 1 September 2020, by section 52(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(5A): inserted, on 1 September 2020, by section 52(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(5B): inserted, on 1 September 2020, by section 52(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(6): replaced, on 1 September 2020, by section 52(3) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(7): amended, on 1 November 2007, by section 26(2) of the Companies Amendment Act 2006 (2006 No 56).

Section 286(9): replaced, on 1 September 2020, by section 52(4) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

Section 286(10): inserted, on 1 September 2020, by section 52(4) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).