Receiverships Act 1993

1: Short Title and commencement
1: This Act may be cited as the Receiverships Act 1993.
2: This Act shall come into force on 1 July 1994.
2: Interpretation
1: In this Act, unless the context otherwise requires,— account receivable section 16(1) company section 2(1) court creditor director
a: a company within the meaning of section 2(1)
i: any person occupying the position of director of the company by whatever name called; and
ii: a person in accordance with whose directions or instructions a person referred to in subparagraph (i) may be required or is accustomed to act; and
iii: a person in accordance with whose directions or instructions the board of the company may be required or is accustomed to act:
b: an overseas company, includes an agent, officer, or employee responsible in New Zealand for the business of the overseas company:
c: any other body corporate, means a person having functions similar to those of a director of a company;— but does not include a receiver document
a: any writing on material; and
b: information recorded or stored by means of a tape recorder, computer, or other device; and material subsequently derived from information so recorded or stored; and
c: a book, graph, or drawing; and
d: a photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of equipment) of being reproduced grantor insolvency practitioner section 5(1) inventory section 16(1) licensed insolvency practitioner section 5(1) liquidator Part 16 liquidation local authority Local Government Act 2002 mortgage mortgagee new value section 16(1) Official Assignee Insolvency Act 2006 overseas company preferential claims Schedule 7 clause 1(1) proceeds section 16(1) prohibition order section 37(6) section 239ADV(1) 286(5) property
a: real and personal property:
b: an estate or interest in real or personal property:
c: a debt:
d: any thing in action:
e: any other right or interest property in receivership purchase money security interest section 16(1) receiver
a: by or under any deed or agreement; or
b: by the court in the exercise of a power conferred on the court or in the exercise of its inherent jurisdiction— whether or not the person appointed is empowered to sell any of the property in receivership; but does not include—
c: a mortgagee who, whether personally or through an agent, exercises a power to—
i: enter into possession of mortgaged property in a manner referred to in section 137
ii: sell or otherwise alienate mortgaged property; or
d: an agent of any such mortgagee Registrar
a: a company, has the same meaning as in section 2(1)
b: a society registered under the Industrial and Provident Societies Act 1908
c: a society registered under the Incorporated Societies Act 1908
d: a friendly society or a credit union registered or incorporated Friendly Societies and Credit Unions Act 1982
e: any other body corporate registered under any enactment, means any person discharging the powers, functions, and duties of a registrar under that enactment related company section 2(1) security agreement section 16(1) security interest section 17
2: 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.
3: 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 Section 2(1) account receivable inserted 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) company replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) director amended 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) insolvency practitioner inserted 1 September 2020 section 60(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 2(1) inventory inserted 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) licensed insolvency practitioner inserted 1 September 2020 section 60(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 2(1) liquidator amended 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) local authority inserted 1 July 2003 section 262 Local Government Act 2002 Section 2(1) new value inserted 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) Official Assignee amended 3 December 2007 section 445 Insolvency Act 2006 Section 2(1) preferential claims amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 2(1) proceeds inserted 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) prohibition order inserted 1 September 2020 section 60(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 2(1) purchase money security interest inserted 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) receiver substituted 1 January 2008 section 364(1) Property Law Act 2007 Section 2(1) Registrar amended 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) Registrar amended 1 April 2019 section 61(2) Friendly Societies and Credit Unions (Regulatory Improvements) Amendment Act 2018 Section 2(1) related company inserted 1 September 2020 section 60(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 2(1) security agreement added 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(1) security interest added 1 May 2002 section 3 Receiverships Amendment Act 2001 Section 2(3) inserted 1 September 2020 section 60(2) Insolvency Practitioners Regulation (Amendments) Act 2019
3: Public notice
1: 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—
a: in at least 1 issue of the Gazette
b: in at least 1 issue of a newspaper circulating in the area in New Zealand in which is situated—
i: the grantor's place of business; or
ii: if the grantor has more than 1 place of business, the grantor's principal place of business; or
iii: if the grantor has no place of business or neither its place of business nor its principal place of business is known, the grantor's registered office in the case of a body corporate, or the residence of the grantor in the case of an individual.
2: 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—
a: in at least 1 issue of the Gazette
b: in at least 1 issue of a newspaper circulating in the area in which is situated—
i: the place of business in New Zealand of the grantor; or
ii: if the grantor has more than 1 place of business in New Zealand, the principal place of business in New Zealand of the grantor.
3A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 3A inserted 31 August 2019 section 28 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
3B: Act binds the Crown
This Act binds the Crown. Section 3B inserted 1 September 2020 section 61 Insolvency Practitioners Regulation (Amendments) Act 2019
4: Application
1: This Act applies—
a: to a receiver appointed after the coming into force of this Act; and
b: with the exceptions and modifications specified in subsection (2), to a receiver holding office on the coming into force of this Act.
2: In the application of this Act to a receiver holding office on the coming into force of this Act,—
a: section 5
b: section 23
c: section 24(1)﻿(a) section 348(2) of the Companies Act 1955 section 348(2) of that Act Part 7 of that Act
d: section 24(1)﻿(b) report section 348(2) of the Companies Act 1955 Part 7 of that Act
e: section 29
f: paragraphs (b) and (c) of subsection (1) and subsections (5) and (6) of section 32 Section 4(2)﻿(d) amended 1 July 1994 Receiverships Amendment Act 1994
5: Who may be appointed as receiver
1: A person may be appointed as a receiver if the person—
a: is a licensed insolvency practitioner who is permitted to act as a receiver in accordance with the Insolvency Practitioners Regulation Act 2019
b: is not disqualified under subsection (2).
2: Unless the court orders otherwise, the following persons are disqualified from being appointed or acting as a receiver:
a: a mortgagee of the property in receivership:
b: a person who is, or who has, within the 2 years immediately before the commencement of the receivership, been—
i: a director or an auditor of the grantor or of a related company of the grantor; or
ii: a director of the mortgagee of the property in receivership:
c: a person who has, or who has had, within the 2 years immediately before the commencement of the receivership,—
i: a direct interest in a share issued by the grantor; or
ii: an indirect interest in 5% or more of any class of shares issued by the grantor:
d: if the grantor is a company, a person who has—
i: a direct interest in a share issued by a related company of the grantor; or
ii: an indirect interest in 5% or more of any class of shares issued by a related company of the grantor:
e: a person who is a relative (as defined in section 2(1)
f: a person who is disqualified from acting as a receiver by the instrument that confers the power to appoint a receiver:
g: a person to whom a prohibition order applies:
h: if the property in receivership includes a company, a person who is, or who has been, in the 2 years immediately before the commencement of the receivership, an administrator, a deed administrator, or a liquidator of the company.
3: A person commits an offence if—
a: the person knows or ought reasonably to know that they are disqualified under subsection (2); and
b: the person,—
i: with their consent, is appointed as a receiver; or
ii: acts as a receiver.
4: A person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $75,000.
5: See also section 8(2) Section 5 replaced 1 September 2020 section 62 Insolvency Practitioners Regulation (Amendments) Act 2019
6: Appointment of receivers under deeds and agreements
1: 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.
2: The appointment of a receiver in the exercise of a power referred to in subsection (1) must be in writing.
3: 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.
6A: What receiver must do before appointment
1: A person must not be appointed as a receiver unless the person has—
a: consented in writing to the appointment and has not withdrawn the consent at the time of the appointment; and
b: certified in writing that the person is a licensed insolvency practitioner who is not disqualified from appointment under section 5(2)
c: provided to the mortgagee the written consent and certificate required under paragraphs (a) and (b).
2: A person commits an offence if—
a: the person, with their consent, is appointed as a receiver despite failing to certify the matters set out in subsection (1)﻿(b); or
b: the person fails to comply with subsection (1)﻿(c).
3: A person who commits an offence under this section is liable on conviction to a fine not exceeding $10,000. Section 6A inserted 1 September 2020 section 63 Insolvency Practitioners Regulation (Amendments) Act 2019
7: Extent of power to appoint receiver
1: A power conferred by a deed or an agreement to appoint a receiver includes the power to appoint—
a: 2 or more receivers:
b: a receiver additional to 1 or more presently in office:
c: a receiver to succeed a receiver whose office has become vacant— unless the deed or agreement expressly provides otherwise.
2: 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.
8: Notice of appointment
1: A receiver must, before the end of the next working day after the receiver’s appointment,—
a: give to the grantor written notice of the appointment; and
b: give to the Registrar written notice of the appointment, including—
i: the receiver’s full name:
ii: the date of the appointment:
iii: the receiver’s business address:
iv: a brief description of the property in receivership:
v: 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:
vi: a description of the deed, agreement, or instrument by or under which the receiver was appointed:
vii: a copy of the notice referred to in paragraph (a).
1A: 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)
2: 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.
3: 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.
4: Every receiver who contravenes this section commits an offence and is liable on Section 8(1) replaced 1 September 2020 section 64(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 8(1A) inserted 1 September 2020 section 64(2) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 8(3) replaced 1 September 2020 section 64(3) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 8(4) amended 1 July 2013 section 413 Criminal Procedure Act 2011
9: Application of section 92 of Property Law Act 1952 to receivers
Section 9 repealed 1 January 2008 section 364(1) Property Law Act 2007
10: Notice of receivership
1: 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.
2: 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.
3: A failure to comply with subsection (1) or subsection (2) does not affect the validity of the deed or agreement or document.
4: Every person who—
a: contravenes subsection (1) or subsection (2); or
b: knowingly or wilfully authorises or permits a contravention of subsection (1) or subsection (2)— commits an offence and is liable on 1955 No 63 s 346(2) 1980 No 43 s 40(1) Section 10(4) amended 1 July 2013 section 413 Criminal Procedure Act 2011
11: Vacancy in office of receiver
1: The office of receiver becomes vacant if the person holding office—
a: resigns in accordance with subsection (2); or
b: dies; or
c: becomes disqualified under section 5(2)
d: ceases to be a licensed insolvency practitioner who is permitted to act as a receiver for the property in receivership in accordance with the Insolvency Practitioners Regulation Act 2019
2: 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.
3: If a vacancy occurs in the office of receiver, the person vacating office must,—
a: as soon as practicable,—
i: give public notice of the vacancy; and
ii: give written notice of the vacancy to the person who appointed the receiver (unless the vacancy arose under subsection (1)﻿(a)); and
b: if the receiver held office in relation to the property of a company, give written notice of the vacancy, before the end of the next working day after the vacancy arose, to the Registrar (unless the vacancy arose under subsection (1)﻿(d)).
4:
5: 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.
6:
7: 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.
8: Every person who fails to comply with subsection (3) $10,000 Section 11(1) replaced 1 September 2020 section 65(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(3) replaced 1 September 2020 section 65(2) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(4) repealed 1 September 2020 section 65(2) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(6) repealed 1 September 2020 section 65(3) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(8) amended 1 September 2020 section 65(4) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(8) amended 1 September 2020 section 65(5) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 11(8) amended 1 July 2013 section 413 Criminal Procedure Act 2011
11A: Provision of information and assistance to replacement receiver
1: This section applies if a replacement receiver is appointed.
2: 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.
3: 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.
4: 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. Section 11A inserted 1 September 2020 section 66 Insolvency Practitioners Regulation (Amendments) Act 2019
12: Obligations of grantor
1: A grantor and, in the case of a grantor that is a body corporate, every director of the grantor, must—
a: make available to the receiver all books, documents, and information relating to the property in receivership in the grantor's possession or under the grantor's control:
b: if required to do so by the receiver, verify, by statutory declaration, that the books, documents, and information are complete and correct:
c: give the receiver such assistance as he or she may reasonably require:
d: if the grantor is a body corporate that has a common seal, make the common seal available for use by the receiver.
2: 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).
13: Execution of documents
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.
2:
3: A document signed on behalf of a grantor that is a company within the meaning of section 2(1) section 180
4: 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).
5: A document executed in the manner prescribed by subsection (4) is deemed to have been properly executed by the grantor. Section 13(2) repealed 5 December 2013 section 14 Companies Amendment Act 2013 Section 13(3) replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 13(4) replaced 5 December 2013 section 14 Companies Amendment Act 2013
14: Powers of receivers
1: 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.
2: Subject to the deed or agreement or the order of the court by or under which the appointment was made, a receiver may—
a: demand and recover, by action or otherwise, income of the property in receivership:
b: issue receipts for income recovered:
c: manage the property in receivership:
d: insure the property in receivership:
e: repair and maintain the property in receivership:
f: inspect at any reasonable time books or documents that relate to the property in receivership and that are in the possession or under the control of the grantor:
g: exercise, on behalf of the grantor, a right to inspect books or documents that relate to the property in receivership and that are in the possession or under the control of a person other than the grantor:
h: in a case where the receiver is appointed in respect of all or substantially all of the assets and undertaking of a grantor that is a body corporate, change the registered office or address for service of the body corporate.
15: Power to make calls on shares
1: 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.
2: For the purposes of subsection (1), the expression uncalled capital
3: 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.
16: Validity of acts of receivers
1: 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.
2: 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.
17: Consent of mortgagee to sale of property
1: 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.
2: 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—
a: the receiver has made reasonable efforts to obtain the mortgagee's consent; and
b: the sale—
i: is in the interests of the grantor and the grantor's creditors; and
ii: will not substantially prejudice the interests of the mortgagee.
3: An order under this section may be made on such terms and conditions as the court thinks fit.
18: General duties of receivers
1: A receiver must exercise his or her powers in good faith and for a proper purpose.
2: 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.
3: To the extent consistent with subsections (1) and (2), a receiver must exercise his or her powers with reasonable regard to the interests of—
a: the grantor; and
b: persons claiming, through the grantor, interests in the property in receivership; and
c: unsecured creditors of the grantor; and
d: sureties who may be called upon to fulfil obligations of the grantor.
4: 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—
a: is not in breach of the duty referred to in subsection (2); but
b: is still liable for any breach of the duty referred to in subsection (1) and the duty referred to in subsection (3).
5: Nothing in this section limits or affects section 19
19: Duty of receiver selling property
A receiver who exercises a power of sale of property in receivership owes a duty to—
a: the grantor; and
b: persons claiming, through the grantor, interests in the property in receivership; and
c: unsecured creditors of the grantor; and
d: sureties who may be called upon to fulfil obligations of the grantor— to obtain the best price reasonably obtainable as at the time of sale.
20: No defence or indemnity
Notwithstanding any enactment or rule of law or anything contained in the deed or agreement by or under which a receiver is appointed,—
a: it is not a defence to proceedings against a receiver for a breach of the duty imposed by section 19
b: a receiver is not entitled to compensation or indemnity from the property in receivership or the grantor in respect of any liability incurred by the receiver arising from a breach of the duty imposed by section 19
21: Duty in relation to money
1: 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.
2: A person who fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $75,000. Section 21(2) inserted 1 September 2020 section 67 Insolvency Practitioners Regulation (Amendments) Act 2019
22: Accounting records
1: 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.
2: The accounting records must be retained for not less than 6 years after the receivership ends.
3: A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000. Section 22(3) inserted 1 September 2020 section 68 Insolvency Practitioners Regulation (Amendments) Act 2019
23: First report by receiver
1: 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—
a: particulars of the assets comprising the property in receivership; and
b: particulars of the debts and liabilities to be satisfied from the property in receivership; and
c: the names and addresses of the creditors with an interest in the property in receivership; and
d: particulars of any encumbrance over the property in receivership held by any creditor including the date on which it was created; and
e: particulars of any default by the grantor in making relevant information available; and
f: such other information as may be prescribed.
2: The report must also include details of—
a: the events leading up to the appointment of the receiver, so far as the receiver is aware of them; and
b: property disposed of and any proposals for the disposal of property in receivership; and
c: amounts owing, as at the date of appointment, to any person in whose interests the receiver was appointed; and
d: amounts owing, as at the date of appointment, to creditors of the grantor having preferential claims; and
e: amounts likely to be available for payment to creditors other than those referred to in paragraph (c) or paragraph (d).
3: 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.
4: A receiver who fails to comply with this section commits an offence and is liable on Section 23(4) amended 1 July 2013 section 413 Criminal Procedure Act 2011
24: Further reports by receiver
1: 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.
2: 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.
3: 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)
4: 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.
5: A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000. Section 24 replaced 1 September 2020 section 69 Insolvency Practitioners Regulation (Amendments) Act 2019
24A: Summary report by receiver
1: 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.
2: The summary report must contain the information prescribed for the purpose of this section by regulations made under section 395(1)﻿(cba)
3: A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000. Section 24A inserted 1 September 2020 section 69 Insolvency Practitioners Regulation (Amendments) Act 2019
25: Extension of time for preparing reports
A period of time within which a person must prepare a report referred to in section 23 section 24
a: the court, where the person was appointed a receiver by the court:
b: the Registrar, where the person was appointed a receiver by or under a deed or agreement.
26: Persons entitled to receive reports
1: A copy of every report prepared under section 23 section 24
a: the grantor; and
b: every person in whose interests the receiver was appointed.
2: If the person was appointed a receiver by the court, he or she must file a copy of every report prepared under section 23 section 24
3: Not later than 21 days after receiving a written request for a copy of any report prepared under section 23 section 24
a: a creditor, director, or surety of the grantor; or
b: any other person with an interest in any of the property in receivership; or
c: the authorised agent of any of them— 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.
4: Within 7 days after preparing a report under section 23 section 24
5: Every person who fails to comply with this section commits an offence and is liable on Section 26(4) amended 1 September 2020 section 70 Insolvency Practitioners Regulation (Amendments) Act 2019 Section 26(5) amended 1 July 2013 section 413 Criminal Procedure Act 2011
27: Persons entitled to inspect reports
A person to whom a report must be sent in accordance with section 26
28: Duty to notify suspected offences against other Acts
Section 28 repealed 1 September 2020 section 71 Insolvency Practitioners Regulation (Amendments) Act 2019
29: Notice of end of receivership
1: Not later than 7 days after a receivership
2: Every person who fails to comply with subsection (1) commits an offence and is liable on Section 29(1) amended 1 September 2020 section 72 Insolvency Practitioners Regulation (Amendments) Act 2019 Section 29(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
30: Preferential claims
1: 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: is over all or any part of the company's accounts receivable and inventory or all or any part of either of them; and
b: is not a purchase money security interest that has been perfected at the time specified in section 74
c: is not a security interest that has been perfected under the Personal Property Securities Act 1999
d: is not a security interest referred to in subsection (6).
2: A receiver to whom this section applies must apply accounts receivable and inventory that are subject to the security interest or their proceeds—
a: first, to reimburse the receiver for his or her expenses and remuneration; and
b: secondly, to pay the claims of any person who has—
i: a purchase money security interest over all or any of those assets, that has been perfected at the time specified in section 74
ii: a security interest over all or any of those assets, that has been perfected under the Personal Property Securities Act 1999
iii: a security interest referred to in subsection (6) that is over all or any of those assets; and
c: thirdly, to pay preferential claims to the extent and in the order of priority specified in Schedule 7 clauses 1(1) 2(1)﻿(b)
2A: 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).
2B: For the purposes of subsection (2)﻿(a), if an amount of an expense or of remuneration—
a: is payable partly in relation to the accounts receivable or inventory concerned and partly in relation to other property,—
i: the amount must be fairly and equitably apportioned between the accounts receivable or inventory and the other property; and
ii: the proportion relating to the accounts receivable or inventory must be taken into account; and
iii: the proportion relating to the other property must be disregarded:
b: is payable only in relation to property other than the accounts receivable or inventory concerned, the amount must be disregarded:
c: is not payable in relation to any particular property, only a fair and equitable proportion of the amount must be taken into account.
3: In the application of Schedule 7
a: references to a liquidator are to be read as references to a receiver:
b: references to the commencement of the liquidation are to be read as references to the appointment of the receiver:
c: references to a company being put into or being in liquidation are to be read as references to the company being put into or being in receivership:
d: the reference to a period of 4 months before the commencement of the liquidation in clause 1(2)﻿(a)
i: 14 days after the date of appointment of the receiver; or
ii: if notice of the termination of that employee's employment is lawfully given to the employee within 14 days after the date of appointment of the receiver or by any later date to which the period for giving notice is extended under section 32(3)
e: the reference to before, or because of, the commencement of the liquidation in clause 1(2)﻿(b) and (c) section 32(3)
4:
5: The provisions of this section, as in force immediately before the commencement of the Personal Property Securities Act 1999
6: 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—
a: the counterparties to the derivative are—
i: 2 qualifying counterparties; or
ii: a qualifying counterparty and an overseas person; and
b: before enforcement of the security interest, the collateral is transferred or otherwise dealt with so as to be in the possession or under the control of—
i: the enforcing counterparty; or
ii: another person (who is not the company that granted the security interest) on behalf of the enforcing counterparty, under the terms of an arrangement evidenced in writing.
7: Terms and expressions defined in section 122A Banking (Prudential Supervision) Act 1989
8: Section 122B Banking (Prudential Supervision) Act 1989 section 122(9A)﻿(b) Section 30(1) substituted 1 May 2002 section 5(1) Receiverships Amendment Act 2001 Section 30(1)﻿(b) amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(1)﻿(c) amended 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(1)﻿(d) inserted 31 August 2019 section 29(1) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 30(2) substituted 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(2)﻿(b)﻿(iii) inserted 31 August 2019 section 29(2) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 30(2A) inserted 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(2B) inserted 1 January 2008 section 364(1) Property Law Act 2007 Section 30(3)﻿(d) added 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(3)﻿(e) added 1 November 2007 section 41 Companies Amendment Act 2006 Section 30(4) repealed 5 December 2013 section 14 Companies Amendment Act 2013 Section 30(5) added 1 May 2002 section 5(3) Receiverships Amendment Act 2001 Section 30(6) inserted 31 August 2019 section 29(3) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 30(7) inserted 31 August 2019 section 29(3) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 30(7) amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 30(8) inserted 31 August 2019 section 29(3) Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 30(8) amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021
30A: Extinguishment of subordinate security interests
1: 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.
2: 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) 1999 No 126 s 115 Section 30A inserted 1 May 2002 section 6 Receiverships Amendment Act 2001 Section 30A(2) added 15 December 2005 section 3 Receiverships Amendment Act 2005
30B: Priorities on distribution by receiver of surplus representing proceeds of personal property
1: A surplus representing the proceeds of personal property must be distributed in the following order:
a: to any person who has registered a financing statement under the Personal Property Securities Act 1999
i: the registration was effective immediately before the receiver disposed of the property; and
ii: the security interest relating to that registration was subordinate to the security interest of the person in whose interests the receiver was appointed:
b: to any other person ( A
c: to the grantor.
2: 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 Part 8
3: 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) the mortgagee the mortgagor the receiver the grantor Section 30B inserted 15 December 2005 section 4 Receiverships Amendment Act 2005 Section 30B(3) amended 1 January 2008 section 364(1) Property Law Act 2007
30C: Surplus may be paid into court
1: A receiver may pay a surplus referred to in section 30A(2) section 30B(1) or (2)
2: The surplus may only be paid out on an application by the receiver or by a person claiming an entitlement to the surplus. Section 30C inserted 15 December 2005 section 4 Receiverships Amendment Act 2005
30D: Meaning of surplus and net proceeds
1: For the purposes of sections 30A to 30C
a: the amount of the debt owed by the grantor to the person in whose interests the receiver was appointed (where the property secures payment of that debt); or
b: the monetary value of the obligation owed by the grantor to the person in whose interests the receiver was appointed (where the property secures performance of that obligation).
2: In subsection (1), net proceeds
a: the receiver's expenses and remuneration; and
b: any amount or the monetary value of any obligation, as the case may be, secured by any security interest that ranks in priority to the security interest granted to the person in whose interests the receiver was appointed; and
c: any other preferential claims or priority claims according to law. Section 30D inserted 15 December 2005 section 4 Receiverships Amendment Act 2005
31: Powers of receiver on liquidation or bankruptcy
1: 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—
a: a company that is being wound up or that has been put into liquidation; or
b: a debtor who has been adjudged bankrupt under the Insolvency Act 2006 unless the court orders otherwise.
2: A receiver holding office in respect of property referred to in subsection (1) may act as the agent of the grantor only—
a: with the approval of the court; or
b: with the written consent of the liquidator or the Official Assignee, as the case may be.
3: 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.
4: 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. Section 31(1)﻿(b) amended 3 December 2007 section 445 Insolvency Act 2006
32: Liabilities of receiver
1: Subject to subsections (2) and (3), a receiver is personally liable—
a: on a contract entered into by the receiver in the exercise of any of the receiver's powers; and
b: for payment of wages or salary that, during the receivership, accrue under a contract of employment relating to the property in receivership and entered into before the appointment of the receiver if notice of the termination of the contract is not lawfully given within 14 days after the date of appointment; and
c: for payment of remuneration under any contract with—
i: a director of a grantor that is a body corporate; or
ii: a person who, in relation to a grantor that is not a body corporate, occupies a position equivalent to that of a director of a body corporate— if the receiver has expressly confirmed the contract.
2: 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.
3: 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.
4: Every application under subsection (3) must be made before the expiry of the period referred to.
5: 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.
6: 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—
a: the date on which the receivership ends; or
b: the date on which the grantor ceases to use, possess, or occupy the property,— whichever is the earlier.
7: The court may, on the application of a receiver,—
a: limit the liability of the receiver to a greater extent than that specified in subsection (6):
b: excuse the receiver from liability under subsection (5).
8: Nothing in subsection (5) or subsection (6)—
a: is to be taken as giving rise to an adoption by a receiver of an agreement referred to in subsection (5); or
b: renders a receiver liable to perform any other obligation under the agreement.
9: A receiver is entitled to an indemnity out of the property in receivership in respect of personal liability under this section.
10: Nothing in this section—
a: limits any other right of indemnity to which a receiver may be entitled; or
b: limits the liability of a receiver on a contract entered into without authority; or
c: confers on a receiver a right to an indemnity in respect of liability on a contract entered into without authority.
33: Relief from liability
1: 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—
a: the liability was incurred solely by reason of a defect in the appointment of the receiver or in the deed or agreement or order of the court by or under which the receiver was appointed; and
b: the receiver acted honestly and reasonably and ought, in the circumstances, to be excused.
2: The court may exercise its powers under subsection (1) subject to such terms and conditions as it thinks fit.
3: 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.
4: The court may give such directions as it thinks fit for the purposes of subsection (3). 1955 No 63 s 345A 1980 No 43 s 39
34: Court supervision of receivers
1: The court may, on the application of a receiver,—
a: give directions in relation to any matter arising in connection with the performance of the functions of the receiver:
b: revoke or vary any such directions.
2: The court may, on the application of a person referred to in subsection (3),—
a: in respect of any period, review or fix the remuneration of a receiver at a level which is reasonable in the circumstances:
b: to the extent that an amount retained by a receiver as remuneration is found by the court to be unreasonable in the circumstances, order the receiver to refund the amount:
c: declare whether or not a receiver was validly appointed in respect of any property or validly entered into possession or assumed control of any property.
3: Any of the following persons may apply to the court under subsection (2):
a: the receiver:
b: the grantor:
c: a creditor of the grantor:
d: a person claiming, through the grantor, an interest in the property in receivership:
e: the board of directors of the grantor or, in the case of a grantor that is in liquidation, the board of the grantor at the time the liquidator was appointed:
f: if the grantor is a company, a liquidator:
g: if the grantor is a person who has been adjudged bankrupt, the Official Assignee of the estate of the grantor.
4: The powers given by subsections (1) and (2)—
a: are in addition to any other powers the court may exercise under this Act, any other Act, or in its inherent jurisdiction; and
b: may be exercised in relation to a matter occurring either before or after the commencement of this Act and whether or not the receiver has ceased to act as receiver when the application is made.
5: The court may, on the application of a person referred to in subsection (3), revoke or vary an order made under subsection (2).
6: 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).
7: 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).
35: Court may terminate or limit receivership
1: The court may, on the application of a person referred to in subsection (2),—
a: order that a receiver must cease to act as such as from a specified date, and prohibit the appointment of any other receiver in respect of the property in receivership:
b: order that a receiver must, as from a specified date, act only in respect of specified assets forming part of the property in receivership.
2: Any of the following persons may apply to the court under subsection (1):
a: the grantor:
b: if the grantor is a company, a liquidator:
c: if the grantor is a person who has been adjudged bankrupt, the Official Assignee of the estate of the grantor.
3: An order may be made under subsection (1) only if the court is satisfied that—
a: the purpose of the receivership has been satisfied so far as possible; or
b: circumstances no longer justify its continuation.
4: 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.
5: An order under subsection (1) may be made on such terms and conditions as the court thinks fit.
6: 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.
7: 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.
8: 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. 1955 No 63 s 346A 1980 No 43 s 41
36: Meaning of failure to comply
1: In section 37 failure to comply
a: the deed, agreement, or order of the court by or under which the receiver was appointed:
b: an enactment:
c: a rule of law:
d: a court order.
2: In proceedings under section 37
a: a finding of any fact made in proceedings before the District Court or High Court for an offence under this Act or any other enactment that there was a failure to comply is prima facie evidence of that fact:
b: a finding described in paragraph (a) may be proved by production of a document under the seal of the court in which the finding was made. 1986 No 121 s 46 Section 36 replaced 1 September 2020 section 73 Insolvency Practitioners Regulation (Amendments) Act 2019
37: Orders to enforce receiver's duties
1: An application for an order under this section may be made by—
a: the Registrar:
b: a receiver:
c: a person seeking appointment as a receiver:
d: the grantor:
e: a person with an interest in the property in receivership:
f: a creditor of the grantor:
g: a guarantor of an obligation of the grantor:
h: if the grantor is a company, a liquidator of the grantor:
i: if the receiver is a qualified statutory accountant (within the meaning of section 5(1)
j: if the receiver is a barrister and solicitor or a solicitor, the President of the New Zealand Law Society:
k: if the grantor is a person who has been adjudged bankrupt, the Official Assignee of the estate of the grantor.
2: 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.
3: 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.
4: If the court is satisfied that there is, or has been, a failure to comply, the court may—
a: relieve the receiver of the duty to comply wholly or in part; or
b: order the receiver to comply to the extent specified in the order; or
c: remove the receiver from office; or
d: make a prohibition order.
5: The court may, in respect of a person who is or becomes disqualified under section 5(2)
a: remove the person from office; or
b: order that the person may be appointed and act or may continue to act as a receiver, despite section 5(2)
6: 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.
6A: 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.
6B: 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.
7: A person to whom a prohibition order applies—
a: must not act (or continue to act) as an insolvency practitioner; and
b: must be treated as if they are not a licensed insolvency practitioner ( see section 8
8: In making an order under this section the court may, if it thinks fit,—
a: make an order extending the time for compliance:
b: impose a term or condition:
c: make an ancillary order.
9: 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.
10: The Registrar must provide a copy of the order to each accredited body (within the meaning of the Insolvency Practitioners Regulation Act 2019 Section 37(1)﻿(i) replaced 1 July 2015 section 17 Financial Reporting Amendment Act 2014 Section 37(4) replaced 1 September 2020 section 74(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(5) replaced 1 September 2020 section 74(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(6) replaced 1 September 2020 section 74(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(6A) inserted 1 September 2020 section 74(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(6B) inserted 1 September 2020 section 74(1) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(7) replaced 1 September 2020 section 74(2) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(9) replaced 1 September 2020 section 74(3) Insolvency Practitioners Regulation (Amendments) Act 2019 Section 37(10) inserted 1 September 2020 section 74(3) Insolvency Practitioners Regulation (Amendments) Act 2019
38: Special provisions relating to evidence
1: Evidence that, within the preceding 5 years while a person was acting as a receiver or as a liquidator, as the case may be,—
a: the court has, in relation to that person, on 2 or more occasions made an order to comply under section 37
b: the court has, in relation to that person, on 2 or more occasions made an order to comply under section 286
c: the court has, in relation to that person, made 1 or more orders to comply under section 37 section 286 is, in the absence of special reasons to the contrary, evidence of persistent failures to comply for the purposes of section 37(6)﻿(a)
2: Evidence that, within the preceding 5 years while a person was acting as a receiver or as a liquidator, as the case may be,—
a: 2 or more applications for an order to comply under section 37
b: 2 or more applications for an order to comply under section 286
c: 1 or more applications for an order to comply under section 37 section 286 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)
39: Orders protecting property in receivership
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—
a: for preserving property in receivership:
b: requiring the receiver for that purpose to make available to any person specified in the order any information and documents in the possession or under the control of the receiver.
40: Refusal to supply essential services prohibited
1: For the purposes of this section, an essential service
a: the retail supply of gas:
b: the retail supply of electricity:
c: the supply of water:
d: telecommunications services.
2: For the purposes of this section, telecommunications services
3: Notwithstanding the provisions of any other Act or any contract, a supplier of an essential service must not—
a: refuse to supply the service to a receiver or to the owner of property in receivership by reason of the grantor's default in paying charges due for the service in relation to a period before the date of the appointment of the receiver; or
b: make it a condition of the further supply of the service to a receiver or to the owner of property in receivership that payment be made of outstanding charges due for the service in relation to a period before the date of the appointment of the receiver; or
c: Section 40(3)﻿(c) repealed 1 July 1994 Receiverships Amendment Act 1994 Local authorities Heading: inserted 1 July 2003 section 262 Local Government Act 2002
40A: Instrument may provide for appointment of receiver
Subject to the Personal Property Securities Act 1999 1974 No 123 s 122ZL(1) Section 40A inserted 1 July 2003 section 262 Local Government Act 2002
40B: Power of court to appoint receiver
1: Subject to sections 40D 40E section 115
2: An appointment under subsection (1) must be for such period, with such rights, powers, and duties, and on such terms and conditions, including as to security and remuneration, as the court considers appropriate in all the circumstances.
3: When considering, in accordance with subsection (2), the terms and conditions upon which a receiver can be appointed by a court pursuant to subsection (1), the court must—
a: take account of the interests of both the secured and non-secured creditors of the local authority, as against—
i: the interests of the local authority itself; and
ii: the requirement of the local authority to provide those services that are essential for the maintenance of public health and safety; and
iii: the interests of the ratepayers with property within the area of the local authority; and
iv: the interests of the general public living within the area of the local authority; and
b: take account of the interests of secured creditors as against the interests of non-secured creditors of the local authority. 1974 No 123 s 122ZL(2), (3) Section 40B inserted 1 July 2003 section 262 Local Government Act 2002
40C: Powers and duties of receivers
1: A receiver of any asset of a local authority 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 were a company.
2: 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
3: 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,—
a: the rates or other revenues so charged vest in the receiver; and
b: all powers necessary for the recovery of rates levied under section 115 1974 No 66 s 122ZM Section 40C inserted 1 July 2003 section 262 Local Government Act 2002
40D: Constraints on receiver
1: 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 must ensure that no action of the receiver prevents the provision of those services of the local authority that are essential for the maintenance of public health and safety requirements.
2: For the purposes of this section,—
a: an action of a receiver is deemed not to prevent provision of the services specified in subsection (1) unless—
i: that action necessarily results in that outcome; and
ii: the outcome is not more fairly attributable to the act, or omission to act, of persons outside the control of the receiver; and
b: receiver
3: 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:
a: first, the receiver's remuneration, and costs incurred by the receiver and reimbursement of the costs of obtaining appointment of the receiver to any person who has incurred them:
b: second, any amounts payable in respect of claims by law to be preferred to claims under any charge over those assets:
c: third, any amounts required to be paid out of the proceeds of collection of the money and assets to enable the receiver to provide the services specified in subsection (1):
d: fourth, the amounts secured by any charges over those assets in the order of priority accorded those charges, so as to preserve the respective entitlements of the holders of those charges:
e: fifth, if the receiver was appointed on the application of an unsecured creditor or unsecured creditors, to those creditors or, as the court may direct, any amounts payable to them,— and any residue must be paid to, or applied for the benefit of, the local authority, as it may direct.
4: A receiver appointed under section 40A section 40B(1)
5: Subject to subsection (6), if any land vested in a local authority is—
a: a reserve under the Reserves Act 1977
b: land over which the local authority has no power of disposition; or
c: land in respect of which the local authority's power of disposition is conditional,— the power of disposition that a receiver of that local authority has in respect of that 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.
6: 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. 1974 No 123 s 122ZN Section 40D inserted 1 July 2003 section 262 Local Government Act 2002
40E: Protection for receiver
1: Subject to subsection (4), no proceedings lie against any receiver of a local authority for breach of section 40D(1)—
a: by the receiver; or
b: by any adviser or delegate of the receiver (being an adviser or delegate who has been reasonably selected and reasonably supervised).
2: Subject to subsection (4), no proceedings lie against any adviser or delegate of any receiver of a local authority for a breach of section 40D
3: 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—
a: by the local authority, in the case of a receiver appointed by the High Court under section 40B(1)
b: out of the assets subject to receivership, in the case of any other receiver but subject to any contrary terms of appointment.
4: 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.
5: Nothing in this section limits or affects the provisions of sections 19 20 1974 No 123 s 122ZO Section 40E inserted 1 July 2003 section 262 Local Government Act 2002
41: Repeals
1: Section 101 and Part 7 of the Companies Act 1955
2: Sections 6 and 39 to 43 of the Companies Amendment Act 1980 Section 41 substituted 1 July 1994 Receiverships Amendment Act 1994 (1994 No 14)
42: Act subject to application of Cape Town Convention and Aircraft Protocol
1: Sections 17 30 section 106 Part 12
2: In this section,— Aircraft Protocol section 104(1) Cape Town Convention section 104(1) Section 42 added 1 November 2010 section 14(1) Civil Aviation (Cape Town Convention and Other Matters) Amendment Act 2010