faqs (18)
A receiver is usually appointed by a bank or other creditor holding a General Security Agreement ("GSA") covering all the company's assets. Although a receiver has a duty to preserve the rights of other creditors, his or her powers are limited. Once the GSA holder is repaid, the receiver ceases to act. If there are further assets to be realised or matters requiring investigation, a liquidator will also be appointed.
A liquidator's powers are much wider than those of a receiver. Liquidators have investigatory powers, and powers to set aside voidable transactions and bring actions for offences under the Companies Act.
Solvent liquidation enables the removal of companies from the register which are no longer required, whilst minimising the risks in relation to creditor claims which may later come to light. It can also enable capital gains to be distributed tax-free to shareholders. Please see our Solvent Liquidations article or contact Peri Finnigan.
It's very easy - just go to www.business.govt.nz/companies and search on the company name in the box at the top right. Details of any insolvencies, together with all reports to creditors, are listed on the 'Documents' tab.
A liquidator is usually appointed either by the shareholders, or by creditors through an application to the High Court. For shareholders, the procedure is generally as simple as signing a resolution. There are therefore normally no legal costs involved in a shareholder appointment. In a court appointed liquidation, the costs of applying to the court are a preferential claim in the liquidation.
For more information on the process of placing a company into liquidation, see our Liquidations page.