NZ Companies Act 1996 and Liquidation, Winding up of the company, reporting duties of liquidator, the liquidation process and powers of the liquidators

1. LIQUIDATIONS —- “Winding Up”
The Liquidation Process
Application is made to wind up the company
Realisation of the Assets
Adjudication of the claims and distribution
Release of the Liquidator and dissolution of
the company - ‘Striking off’
Application Made by
 Creditors (petition— watershed meeting)
 Compulsory (Court Order)
 Shareholders (Voluntary— Constitution trigger)
Liquidator runs the dissolution of the company
- fills out all the forms, calls all the meetings, makes all the reports and notifications, investigates the conduct of the directors, turns all the assets in- to cash
Once the assets are all liquidated—the liquidator is paid first, then the creditors in order of priority, and if there is any left over—it goes to the shareholders
Liquidator must make a final report which is filed with the Company’s Regis- trar
Appointment of the Liquidator

2. Time Line for Reports & Notifications
Reports MUST be prepared regularly throughout the liquidation process — these reports are sent to every credi- tor, shareholder as well as the Registrar of the Companies
First Report:
 court ordered liquida- tion 25 working days from appointment
 All other liquida- tions—5 working days
Further Reports:
6 monthly reports— containing information about the conduct and any further proposals for the liquidation (20 working days to deliver them
Company of Registrar is notified once
Liquidator is appointed (10 days)
Creditor meeting is called— the meeting must be held within 15 days after the liq- uidator receives the notices
Public Notification in the Gazette and in 1 public newspaper (10 days)
All Relevant Accounting Records must be kept
The First Meeting sets out how the Liquidator will manage the liquida- tion (so it has a plan)

3. Powers of
Liquidators
Get any information they need
Recover any debts owed
Disown any onerous property
Get rid of all the assets to make distributions
Voidable transactions
Ask for a pooling order of any interlinked companies