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 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.
A receiver must be a licensed insolvency practitioner.
Two or more receivers can be appointed to act at once and may act jointly or individually.
Notice of appointment
Once appointed, and before the end of the next working day, the receiver must:
- give written notice to the grantor, and
- file a notice of appointment with us.
The notice of appointment must include:
- their full legal name
- the date of being appointed
- their office address
- a brief description of the property in receivership
- the name of the person who appointed the receiver or, if the receiver was appointed by the court, the name of the person who applied for the receiver to be appointed, and
- a description of the deed, agreement, or instrument by or under which the receiver was appointed.
The notice to us must also include a copy of the notice given to the grantor.
Within 5 working days, a receiver must issue public notice of their appointment in:
- the New Zealand Gazette, and
- at least 1 newspaper in circulation in the area where your business is located.
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. A replacement receiver must also be a licensed insolvency practitioner.
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.
For more information about the further reports by the receiver, please refer to regulation 10 of the Companies (Reporting by Insolvency Practitioners) Regulations 2020 .
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.
The receiver must prepare and file with us a summary report relating to the receivership1, using the Companies Register online filing service.
For more information about the summary report, please refer to Regulation 11 of the Companies (Reporting by Insolvency Practitioners) Regulations 2020 .
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.
Receivers must report to us any serious problems relating to bodies corporate in receivership. This includes offences, breaches of directors’ duties, and misappropriation of company funds.
Report a serious problem
Filing service for receivers
The Companies Office offers an online service to assist receivers with filing notices and reports, managing their document portfolios, and meeting their statutory reporting obligations.