This Act may be cited as the Receiverships Act 1993.

This Act shall come into force on 1 July 1994.

In this Act, unless the context otherwise requires,—

In this Act, unless the context otherwise requires, a reference to a person by whom, or in whose interests, a receiver was appointed, as the case may be, includes a reference to a person to whom the rights and interests under any deed or agreement by or under which the receiver was appointed have been transferred or assigned.

A requirement in this Act for a person to provide a notice or other document may be satisfied by the person providing the notice or other document by electronic means in accordance with Part 4 of the Contract and Commercial Law Act 2017.

Where, pursuant to this Act, public notice must be given of any matter affecting a grantor, not being a grantor that is an overseas company, that notice must be given by publishing notice of the matter—

Where, pursuant to this Act, public notice must be given of any matter affecting a grantor that is an overseas company, that notice must be given by publishing notice of the matter—

The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.

This Act binds the Crown.

This Act applies—

In the application of this Act to a receiver holding office on the coming into force of this Act,—

A person may be appointed as a receiver if the person—

Unless the court orders otherwise, the following persons are disqualified from being appointed or acting as a receiver:

A person commits an offence if—

A person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $75,000.

See also section 8(2) of the Insolvency Practitioners Regulation Act 2019.

A receiver may be appointed in respect of the property of a person by, or in the exercise of a power conferred by, a deed or agreement to which that person is a party.

The appointment of a receiver in the exercise of a power referred to in subsection (1) must be in writing.

A receiver appointed by, or under a power conferred by, a deed or agreement is the agent of the grantor unless it is expressly provided otherwise in the deed or agreement or the instrument by or under which the receiver was appointed.

A person must not be appointed as a receiver unless the person has—

A person commits an offence if—

A person who commits an offence under this section is liable on conviction to a fine not exceeding $10,000.

A power conferred by a deed or an agreement to appoint a receiver includes the power to appoint—

unless the deed or agreement expressly provides otherwise.

Two or more receivers may act jointly or severally to the extent that they have the same powers unless the deed or agreement under which, or the order of the court by which, they are appointed expressly provides otherwise.

A receiver must, before the end of the next working day after the receiver’s appointment,—

Within 5 working days after the receiver’s appointment, the receiver must give notice of the appointment, including the matters described in subsection (1)(b)(i) to (vi), in accordance with section 3(1)(a).

Where the appointment of the receiver is in addition to a receiver who already holds office or is in place of a person who has vacated office as receiver, as the case may be, every notice under this section must state that fact.

A notice given under this section must include a statement that receivers are required to be licensed insolvency practitioners, and that more information about the regulation of insolvency practitioners is available from the Registrar.

Every receiver who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

Where a receiver is appointed in relation to a specific asset or specific assets, every deed or agreement entered into, and every document issued, by or on behalf of the grantor or the receiver that relates to the asset or assets and on which the name of the grantor appears must state that a receiver has been appointed.

Where a receiver is appointed in any other case, every deed or agreement entered into, and every document issued, by or on behalf of the grantor or the receiver and on which the name of the grantor appears must state that a receiver has been appointed.

A failure to comply with subsection (1) or subsection (2) does not affect the validity of the deed or agreement or document.

Every person who—

commits an offence and is liable on conviction to a fine not exceeding $5,000.

The office of receiver becomes vacant if the person holding office—

A receiver may resign office by giving not less than 7 days’ written notice of his or her intention to resign to the person by whom the receiver was appointed.

If a vacancy occurs in the office of receiver, the person vacating office must,—

A receiver appointed by the court may resign office by giving not less than 7 days’ notice of his or her intention to resign to the Registrar of the court that made the appointment.

On the application of a person appointed to fill a vacancy in the office of receiver, the court may make any order that it considers necessary or desirable to facilitate the performance of the receiver’s duties.

Every person who fails to comply with subsection (3) commits an offence and is liable on conviction to a fine not exceeding $10,000.

This section applies if a replacement receiver is appointed.

The previous receiver must, where practicable, provide to the replacement receiver the information that the previous receiver has in their possession or under their control and that the replacement receiver reasonably requires to carry out the functions and duties of receiver, including any accounting records and other documents relating to the property in receivership.

The previous receiver must, where practicable, provide to the replacement receiver any assistance that the replacement receiver reasonably requires to carry out the functions and duties of receiver.

A person who fails to comply with subsection (2) or (3) commits an offence and is liable on conviction to a fine not exceeding $10,000.

A grantor and, in the case of a grantor that is a body corporate, every director of the grantor, must—

On the application of the receiver, the court may make an order requiring the grantor, or if the grantor is a body corporate, a director of the grantor to comply with subsection (1).

A receiver may execute in the name and on behalf of the grantor all documents necessary or incidental to the exercise of the receiver’s powers.

A document signed on behalf of a grantor that is a company within the meaning of section 2(1) of the Companies Act 1993 by a receiver is deemed to have been properly executed for the purposes of section 180 of the Companies Act 1993.

Despite any other enactment or rule of law, or any document defining the constitution of a grantor that is a body corporate, if the instrument under which a receiver is appointed empowers the receiver to execute documents (and, if the grantor has a common seal, to use the grantor’s common seal for that purpose), the receiver may execute the documents in the name and on behalf of the grantor (and, if the grantor has a common seal, the receiver may affix the common seal to the documents and attest to the affixing of the common seal).

A document executed in the manner prescribed by subsection (4) is deemed to have been properly executed by the grantor.

A receiver has the powers and authorities expressly or impliedly conferred by the deed or agreement or the order of the court by or under which the appointment was made.

Subject to the deed or agreement or the order of the court by or under which the appointment was made, a receiver may—

A receiver has the same powers as the directors of a grantor that is a company have or, if the grantor is being wound up or in liquidation, as the directors would have if it was not being wound up or in liquidation, to make calls on the members or shareholders of the company in respect of uncalled capital that is charged under the deed or agreement by or under which the receiver was appointed and to charge interest on, and enforce payment of, calls.

For the purposes of subsection (1), the expression uncalled capital includes the amount of any unpaid premium payable in respect of the issue of shares.

The making of a call or the exercise of a power under subsection (1) is, as between the members or shareholders of the company affected and the company, deemed to be a proper call or power made or exercised by the directors of the company.

Subject to subsection (2), no act of a receiver is invalid merely because the receiver was not validly appointed or is disqualified from acting as a receiver or is not authorised to do the act.

No transaction entered into by a receiver is invalid merely because the receiver was not validly appointed or is disqualified from acting as a receiver or is not authorised to enter into the transaction unless the person dealing with the receiver has, or ought to have, by reason of his or her relationship with the receiver or the person by whom the receiver was appointed, knowledge that the receiver was not validly appointed or was disqualified from acting as a receiver or did not have authority to enter into the transaction.

Where the consent of a mortgagee is required to the sale of property in receivership and the receiver is unable to obtain that consent, the receiver may apply to the court for an order authorising the sale of the property, either by itself or together with other assets.

The court may, on an application under subsection (1), make such order as it thinks fit authorising the sale of the property by the receiver if satisfied that—

An order under this section may be made on such terms and conditions as the court thinks fit.

A receiver must exercise his or her powers in good faith and for a proper purpose.

A receiver must exercise his or her powers in a manner he or she believes on reasonable grounds to be in the best interests of the person in whose interests he or she was appointed.

To the extent consistent with subsections (1) and (2), a receiver must exercise his or her powers with reasonable regard to the interests of—

Where a receiver appointed under a deed or agreement acts or refrains from acting in accordance with any directions given by the person in whose interests he or she was appointed, the receiver—

Nothing in this section limits or affects section 19.

A receiver who exercises a power of sale of property in receivership owes a duty to—

to obtain the best price reasonably obtainable as at the time of sale.

Notwithstanding any enactment or rule of law or anything contained in the deed or agreement by or under which a receiver is appointed,—

A receiver must keep money relating to the property in receivership separate from other money received in the course of, but not relating to, the receivership and from other money held by or under the control of the receiver.

A person who fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $75,000.

A receiver must at all times keep accounting records that correctly record and explain the receipts, expenditure, and other transactions relating to the property in receivership.

The accounting records must be retained for not less than 6 years after the receivership ends.

A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

Not later than 2 months after his or her appointment, a receiver must prepare a report on the state of affairs with respect to the property in receivership including—

The report must also include details of—

A receiver may omit from the report details of any proposals for disposal of the property in receivership if he or she considers that their inclusion would materially prejudice the exercise of his or her functions.

A receiver who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

The receiver must, not later than 2 months after the end of each period of 6 months after the receiver’s appointment, prepare a further report on the receivership.

A person who was a receiver at the end of the receivership must, not later than 2 months after the end of the receivership, prepare a further report on the receivership.

Each report prepared under this section must contain the information prescribed for the purpose of this section by regulations made under section 395(1)(cba) of the Companies Act 1993.

A receiver preparing a report under subsection (1) may exclude from the report details of any proposals for disposal of property in receivership if the receiver considers that their inclusion would materially prejudice the exercise of the receiver’s functions.

A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

The person who was a receiver at the end of a receivership must, as soon as practicable after completing the person’s duties in relation to the receivership, provide to the Registrar, in the manner specified by the Registrar, a summary report on the receivership.

The summary report must contain the information prescribed for the purpose of this section by regulations made under section 395(1)(cba) of the Companies Act 1993.

A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

A period of time within which a person must prepare a report referred to in section 23 or section 24 may be extended, on the application of that person, by—

A copy of every report prepared under section 23 or section 24 must be sent by the person required to prepare it to—

If the person was appointed a receiver by the court, he or she must file a copy of every report prepared under section 23 or section 24 in the office of the court.

Not later than 21 days after receiving a written request for a copy of any report prepared under section 23 or section 24 from—

and on payment of the reasonable costs of making and sending the copy, the person who prepared the report must send a copy of the report to the person requesting it.

Within 7 days after preparing a report under section 23 or section 24 in relation to a grantor, the person who prepared the report must send or deliver a copy of the report to the Registrar.

Every person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

A person to whom a report must be sent in accordance with section 26 is entitled to inspect the report during normal office hours at the office of the person required to send it.

Not later than 7 days after a receivership ceases, the person who held office as receiver at the end of the receivership must send or deliver to the Registrar notice in writing of the fact that the receivership has ceased.

Every person who fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

This section applies to a receiver of the property of a grantor that is a company, other than a company in liquidation at the time of the receiver’s appointment, and who was appointed under a security agreement that created or provided for a security interest that—

A receiver to whom this section applies must apply accounts receivable and inventory that are subject to the security interest or their proceeds—

The receiver must apply the accounts receivable and inventory as set out in subsection (2) before paying the claims of any person under a security interest, other than a security interest referred to in subsection (2)(b).

For the purposes of subsection (2)(a), if an amount of an expense or of remuneration—

In the application of Schedule 7 of the Companies Act 1993 in accordance with subsection (2),—

The provisions of this section, as in force immediately before the commencement of the Personal Property Securities Act 1999, continue to apply in respect of a company whose property was subject to a floating charge that, before the commencement of that Act, became a fixed or specific charge.

For the purposes of subsections (1)(d) and (2)(b)(iii), the security interest is a security interest over accounts receivable, inventory, or both to the extent that the security interest secures payment or performance of an obligation under or in relation to a qualifying derivative and—

Terms and expressions defined in section 122A of the Banking (Prudential Supervision) Act 1989 and used in subsection (6) have in that subsection the same meanings as in that section.

Section 122B of the Banking (Prudential Supervision) Act 1989 applies with all necessary modifications for the purposes of subsection (6)(b) (and those modifications include treating references to section 122(9A)(b) of that Act as references to subsection (6)(b) of this section and treating references to the grantor as references to the company that granted the security interest).

If property has been disposed of by a receiver, all security interests in the property and its proceeds that are subordinate to the security interest of the person in whose interests the receiver was appointed are extinguished on the disposition of the property.

If there is a surplus left after the receiver has disposed of personal property, that surplus must be distributed according to the priorities set out in section 30B(1) and (2) unless otherwise required by any other law.

A surplus representing the proceeds of personal property must be distributed in the following order:

Priority as between persons referred to in subsection (1)(a), and as between persons referred to in subsection (1)(b), must be determined according to the applicable law (including Part 7 or Part 8 of the Personal Property Securities Act 1999) as if, in the case of persons referred to in subsection (1)(a), their security interests had not been extinguished.

If, in the case of a distribution of the surplus to a grantor, the grantor cannot be found after reasonable inquiry by the receiver, the provisions of section 186(2) to (5) of the Property Law Act 2007 apply with all necessary modifications as if references in that section to “the mortgagee” and “the mortgagor” were references to “the receiver” and “the grantor” respectively.

A receiver may pay a surplus referred to in section 30A(2) into court if there is a question as to who is entitled to receive payment according to the priorities in section 30B(1) or (2).

The surplus may only be paid out on an application by the receiver or by a person claiming an entitlement to the surplus.

For the purposes of sections 30A to 30C, there is a surplus if the receiver has disposed of personal property in receivership, and the net proceeds exceed—

In subsection (1), net proceeds, in relation to the disposal of personal property in receivership, means the net proceeds of the disposal after deducting—

Subject to subsection (2), a receiver may be appointed or continue to act as a receiver and exercise all the powers of a receiver in respect of property of—

unless the court orders otherwise.

A receiver holding office in respect of property referred to in subsection (1) may act as the agent of the grantor only—

A receiver who, by reason of subsection (2), is not able to act as the agent of the grantor does not, by reason only of that fact, become the agent of a person by whom or in whose interests the receiver was appointed.

A debt or liability incurred by a grantor through the acts of a receiver who is acting as the agent of the grantor in accordance with subsection (2) is not a cost, charge or expense of the liquidation or the administration of the bankrupt’s estate.

Subject to subsections (2) and (3), a receiver is personally liable—

The terms of a contract referred to in paragraph (a) of subsection (1) may exclude or limit the personal liability of a receiver other than a receiver appointed by the court.

The court may, on the application of a receiver, extend the period within which notice of the termination of a contract is required to be given under paragraph (b) of subsection (1) and may extend that period on such terms and conditions as the court thinks fit.

Every application under subsection (3) must be made before the expiry of the period referred to.

Subject to subsection (7), a receiver is personally liable, to the extent specified in subsection (6), for rent and any other payments becoming due under an agreement subsisting at the date of the appointment of the receiver relating to the use, possession, or occupation by the grantor of property in receivership.

The liability of a receiver under subsection (5) is limited to that portion of the rent or other payments which accrue in the period commencing 14 days after the date of the appointment of the receiver and ending on—

whichever is the earlier.

The court may, on the application of a receiver,—

Nothing in subsection (5) or subsection (6)—

A receiver is entitled to an indemnity out of the property in receivership in respect of personal liability under this section.

Nothing in this section—

The court may relieve a person who has acted as a receiver from all or any personal liability incurred in the course of the receivership if it is satisfied that—

The court may exercise its powers under subsection (1) subject to such terms and conditions as it thinks fit.

A person in whose interests a receiver was appointed is liable, subject to such terms and conditions as the court thinks fit, to the extent to which the receiver is relieved from liability.

The court may give such directions as it thinks fit for the purposes of subsection (3).

The court may, on the application of a receiver,—

The court may, on the application of a person referred to in subsection (3),—

Any of the following persons may apply to the court under subsection (2):

The powers given by subsections (1) and (2)—

The court may, on the application of a person referred to in subsection (3), revoke or vary an order made under subsection (2).

Subject to subsection (7), it is a defence to a claim against a receiver in relation to any act or omission by the receiver that he or she acted or omitted to act in accordance with a direction given under subsection (1).

The court may, on the application of a person referred to in subsection (3), order that, by reason of the circumstances in which a direction was obtained under subsection (1), a receiver is not entitled to the protection given by subsection (6).

The court may, on the application of a person referred to in subsection (2),—

Any of the following persons may apply to the court under subsection (1):

An order may be made under subsection (1) only if the court is satisfied that—

Unless the court orders otherwise, a copy of an application under this section must be served on the receiver not less than 7 days before the hearing of the application, and the receiver may appear and be heard at the hearing.

An order under subsection (1) may be made on such terms and conditions as the court thinks fit.

In making an order under subsection (1), the court may prohibit a person in whose interests the receiver was appointed from taking possession or assuming control of the property in receivership.

Except as provided by subsection (6), an order under this section does not affect a security or charge over the property in respect of which the order is made.

The court may, on the application of any person who applied for or is affected by the order, rescind or amend an order made under this section.

In section 37, failure to comply means a person’s failure to comply with any of the following, to the extent that they apply to the person in the person’s capacity as a receiver:

In proceedings under section 37,—

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

An application for an order under this section may be made by a receiver of the property of a grantor in relation to a failure to comply by another receiver of the property of the grantor.

No application may be made to the court in relation to a failure to comply unless notice of the failure to comply has been served on the receiver not less than 7 days before the date of the application and, as at the date of the application, there is a continuing failure to comply.

If the court is satisfied that there is, or has been, a failure to comply, the court may—

The court may, in respect of a person who is or becomes disqualified under section 5(2) from becoming or remaining a receiver,—

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

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.

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.

A person to whom a prohibition order applies—

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

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.

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.

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

is, in the absence of special reasons to the contrary, evidence of persistent failures to comply for the purposes of section 37(6)(a).

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

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).

The court may, on making an order that removes, or has the effect of removing, a receiver from office, make such orders as it thinks fit—

For the purposes of this section, an essential service means—

For the purposes of this section, telecommunications services means the conveyance from one device to another by any line, radio frequency or other medium of any sign, signal, impulse, writing, image, sound, instruction, information, or intelligence of any nature, whether or not for the information of a person using the device.

Notwithstanding the provisions of any other Act or any contract, a supplier of an essential service must not—

In sections 40A to 40E,—

Subject to the Personal Property Securities Act 1999, and without limiting any other rights or remedies of the holder of a charge over any asset of a local authority, a water organisation, or Watercare, an instrument creating or evidencing the terms and conditions of the charge may provide for the appointment of a receiver of such assets in such terms as the parties may agree and the holder of that charge may exercise any such other rights or use any such other remedies.

Subject to sections 40D and 40E and this section, the High Court may,—

An appointment under subsection (1) must be for the period, and with the rights, powers, and duties, and on any terms and conditions, including as to security and remuneration, that the court considers appropriate in all the circumstances.

When considering, in accordance with subsection (2), the terms and conditions upon which a receiver can be appointed by a court in relation to a local authority, the court must—

When considering, in accordance with subsection (2), the terms and conditions upon which a receiver can be appointed by a court in relation to Watercare, the court must—

When considering, in accordance with subsection (2), the terms and conditions upon which a receiver can be appointed by a court in relation to a water organisation, the court must—

In this section,—

A receiver of any asset of a local authority or a specified water organisation is, as the circumstances and the context permit, affected by the restrictions and responsibilities which by law affect a receiver of a company or of an asset or property or rights of a company as if the local authority or the specified water organisation were a company.

The provisions of this Act are, in their application to a receiver of an asset of a local authority, subject to the modifications and exceptions set out in Schedule 1.

If the assets subject to a charge to which this section applies comprise rates or other revenues, then, for the purposes of this section, from the date of the appointment of the receiver and until such time as the appointment terminates,—

If Crown commissioners—water services are or have been appointed to an entity under section 258MC of the Local Government Act 2002 (either before or after the appointment of a receiver in respect of some or all of the assets or rates of that entity under section 40A or section 40B(1)), the High Court may order that any receiver so appointed may not, until the High Court so orders, exercise any of the rights, powers, and duties of a receiver.

In subsection (1), specified water organisation means a water organisation that is exempt under an Order in Council made under section 66 of the Local Government (Water Services) Act 2025 from the requirement that a water organisation must be a company incorporated under the Companies Act 1993.

Despite anything in this Act or in any instrument providing for or governing the appointment of a receiver, a receiver of any asset of a local authority, a water organisation, or Watercare must ensure that no action of the receiver prevents the provision of those services of the local authority, the water organisation, or Watercare that are essential for the maintenance of public health and safety requirements.

For the purposes of this section,—

A receiver must distribute the proceeds of collection of the money and assets the receiver is entitled to collect in the following order of priority:

and any residue must be paid to, or applied for the benefit of, the local authority, the water organisation, or Watercare, as it may direct.

A receiver appointed under section 40A or section 40B(1), in exercising any powers (including those of a manager), is not entitled to control, dispose of, or otherwise interfere with the local authority’s, the water organisation’s, or Watercare’s ability to exercise or perform its rights, powers, and duties in relation to assets not charged in favour of the appointor of a receiver.

Subject to subsection (6), subsection (5A) applies to any land that is vested in a local authority, a water organisation, or Watercare and is—

The power of disposition that a receiver of that local authority, that water organisation, or Watercare has in respect of the land is limited to a power of disposition by way of lease or licence for a term or terms not exceeding in the aggregate 9 years.

The powers of disposition that a receiver has in respect of any land of the kind described in subsection (5)(c) comprise, in addition to the power specified in subsection (5), the same conditional power of disposition as the local authority, the water organisation, or Watercare.

Subject to subsection (4), no proceedings lie against any receiver of a local authority, a water organisation, or Watercare for breach of section 40D(1)—

Subject to subsection (4), no proceedings lie against any adviser or delegate of any receiver of a local authority, a water organisation, or Watercare for a breach of section 40D other than at the instance of the receiver.

Subject to subsection (4), a receiver (and any adviser or delegate who has been reasonably selected and reasonably supervised, as the case requires), must, in respect of any liability relating to the exercise or purported exercise or omission to exercise any right or power of the receiver by the receiver or the adviser of the receiver or the delegate of the receiver, be indemnified—

No person is exempted from liability under subsection (1) or is entitled to be indemnified under subsection (3) for any act or omission to act which constitutes bad faith or gross negligence on the part of that person.

Nothing in this section limits or affects the provisions of sections 19 and 20.

Section 101 and Part 7 of the Companies Act 1955 are hereby repealed.

Sections 6 and 39 to 43 of the Companies Amendment Act 1980 are hereby consequentially repealed.

Sections 17 and 30 and all other provisions of this Act are subject to section 435 of the Civil Aviation Act 2023 (which provides for the primacy of the provisions of the Cape Town Convention and the Aircraft Protocol) and the rest of subpart 4 of Part 10 of the Civil Aviation Act 2023 (which implements the Cape Town Convention and the Aircraft Protocol).

In this section,—