If your company goes into receivership, a receiver is appointed to deal with assets over which your secured creditors have a financial claim.
Appointing a receiver
A receiver is usually an insolvency expert appointed in respect of your company's property:
- under the terms of a deed of agreement between your company and a secured creditor, setting out how your company will repay its debt to the creditor, or
- by a court.
Two or more receivers can be appointed to act at once and may act jointly or individually.
Notice of appointment
On appointment, a receiver must issue public notice of their appointment and include:
- their full legal name
- the date of being appointed
- their office address, and
- a brief description of the property in receivership.
The public notice must appear in:
- the New Zealand Gazette, and
- at least 1 newspaper in circulation in the area where your business is located.
New Zealand Gazette— how to submit a notice
Within 7 days the receiver must also file a notice of appointment with the Registrar of Companies.
If the position of receiver becomes vacant
The role of receiver becomes vacant if the receiver dies, resigns or becomes disqualified.
Immediately following their resignation or disqualification, the receiver must:
- give public notice, and
- send us notice of the vacancy within 7 days.
Regardless of any change in personnel, your company remains in receivership. A replacement receiver, or other receivers who are appointed, must continue to meet their obligations.
Reporting obligations of a receiver
The receiver is responsible for preparing and filing reports on the status of, and activities carried out under, the receivership.
The receiver must prepare and file a report with us on the financial state of affairs of your company. The information gathered for this report usually includes:
- a description of the assets comprising the property in receivership
- debts to be paid from the property in receivership
- amounts owing to creditors with preferential claims (such as unpaid wages and amounts owed to Inland Revenue)
- the names and addresses of creditors with an interest in the property in receivership
- the events leading up to the appointment of the receiver.
The receiver must prepare and file with us a further report every 6 months for the duration of the receivership, summarising:
- the state of affairs of your company at the end of that 6 month period
- amounts owing to the secured creditor
- the activities and outcomes of the receivership, including all amounts received and paid over the previous 6 months
- amounts owing to creditors of the company having preferential claims
- amounts likely to be available to other creditors.
Notice of the end of receivership
The receiver must file notice with us that the receivership has ended within 7 days of this event occurring
The receiver must then prepare and file with us a final report on the state of your company's affairs, and the activities and outcomes of the receivership.
Time limits for filing reports
Each report must be prepared by the receiver within 2 months of:
- the date of their appointment
- the end of each 6 month period during the receivership, and
- the date when the receivership ends.
The receiver may request a time extension for preparing a report.
If the receiver believes an offence has been committed that is relevant to the receivership, they must report this to the Registrar.
Offences that are reported are against the:
- Companies Act 1993
- Financial Markets Conduct Act 2013
- Crimes Act 1961
- Takeovers Act 1993.
Filing service for receivers
The Companies Office offers an online service to assist receivers to file notices and reports, manage their document portfolios, and meet their statutory reporting obligations.