Action required: Incomplete liquidations as at 1 Sep 2021

MBIE has sent the following message to all liquidators:

On 1 September 2020, the Insolvency Practitioners Regulation Act 2019 (the Act) came into force and at the same time the Insolvency Practitioners Register went live. The Act requires insolvency practitioners operating in New Zealand to be licensed by an accredited body.

Clause 5(2) of Schedule 1 of the Act, requires a person who is a liquidator of a company and who, on the first anniversary, is not a licensed insolvency practitioner to resign on the first anniversary, that is 1 September 2021 and section 283 of the Companies Act 1993 then applies.

You must take action on incomplete liquidations by 1 September 2021.

For any liquidators who have not yet received licensing:

If you are not a licensed insolvency practitioner and you have been appointed as a liquidator of a company or multiple companies (or of another entity for example a limited partnership, incorporated society or charitable trust board), please resign or transfer any incomplete liquidations to a licensed insolvency practitioner by 1 September 2021.

Special provisions apply to solvent liquidations

If any of the liquidations are solvent liquidations, then you must file a resolution of solvency and be a lawyer or a qualified statutory accountant to continue administering the liquidation. If you have not filed a resolution of solvency, please file it immediately, otherwise the Registrar considers it as an insolvent liquidation. If the solvent liquidation started prior to 1 September 2020, you must complete the liquidation by 1 September 2021.

Please ignore this email if you have recently vacated, or you have registered the final report and a copy of notice of intention to remove the entity, for your liquidations.

SANJAI RAJ

Registrar of Companies

Registrar of Incorporated Societies