The liquidation process

This process can be different depending on the circumstances, e.g. whether the company is trading, or depending on what assets it has.

  1. Company is unable to pay its creditors

    The company is unable to pay its creditors, or the shareholders have placed into liquidation.

  2. The liquidator notifies the Companies Office, and advertises the appointment.

  3. Creditors’ meeting

    A creditors’ meeting may be held to appoint a replacement liquidator.

  4. The administration of the liquidation starts.

    This may include;

    • closing the business
    • identifying and selling the company assets
    • contacting and receiving claims from the creditors
    • sending progress reports to the creditors
    • investigating possible offences or unusual transactions
    • making payments to creditors (dividends).
  5. Completion

    The final and summary reports are sent to the creditors and the Companies Office is notified. The company is then removed from the Companies Office Register.

    More information about the liquidation process can be found here:

    What happens during liquidation(external link) — New Zealand Companies Office