Licensed insolvency practitioner obligations

If you're a licensed insolvency practitioner you must provide accurate details, meet professional and ethical obligations, and provide reports to the Registrar

In this guide

Provide accurate details and keep them up to date

You must provide the correct details to the accredited body for licensing and registration. You must also update the accredited body any time your details change.

Learn about accredited bodies

Meet professional and ethical obligations

You must also meet the professional and ethical obligations set by the accredited body.

Learn about accredited bodies

Prepare and file reports

You must prepare and file reports with the Registrar of Companies at various stages of each liquidation, receivership or voluntary administration (referred to below as insolvency engagements).

While there are differing reporting requirements for each type of insolvency engagement, you must always file a summary report when an insolvency engagement ends.

Learn about voluntary administrations, receiverships and liquidations, as well as the roles and responsibilities of those appointed to manage company affairs on the Companies Register website.

Voluntary administrations, receiverships and liquidations Companies Register

Filing appointments and reports with the Registrar of Companies

The Companies Register offers an online service for administrators, receivers and liquidators to file notices and reports, and manage their document portfolios.

Learn about the online filing service for administrators, receivers and liquidators Companies Register

Report serious problems

You need to report serious problems you identify during an insolvency engagement. If you detect a serious problem, please notify the Registrar of Companies as soon as practicable using our online form.

Report a serious problem

Where the serious problem concerns the possible commission of an offence you also need to report it to one or both of the following:

  1. The New Zealand Police.
  2. The relevant body responsible for investigating or prosecuting the offence.
    For example:
    • Commerce Commission
    • Financial Markets Authority (FMA)
    • Inland Revenue
    • Serious Fraud Office.

If the insolvent company is a licensed insurer, you must also report the serious problem to the Reserve Bank of New Zealand.

What is a serious problem?

‘Serious problems’ are defined in the Insolvency Practitioners Regulation Act 2019.

Insolvency Practitioners Regulation Act 2019 New Zealand Legislation

You should review this definition and be familiar with its requirements. If you're uncertain about any of its provisions, or whether it applies to a particular set of circumstances, you should seek specialist advice.

‘Serious problems’ include the following matters:

  • Any offence committed by the company.
  • Any offence committed by a past or present director, officer or shareholder of the company.
  • Any material breach of a director’s duty by a past or present director of the company.
  • A person who has taken part in the formation, administration, management, liquidation or receivership of the company who:
    • has misapplied or retained or become liable or accountable for the company’s money or property (whether in New Zealand or elsewhere); or
    • is guilty of negligence, default, or breach of duty or trust in relation to the company.
  • The company has been managed in a way that has materially contributed to it failing under section 385(1) of the Companies Act 1993. For example:
    • It has been put into liquidation because of its inability to pay its debts as and when they became due.
    • It has ceased to carry on business because of its inability to pay its debts as and when they became due.
    • It was put into receivership (whether or not the receiver’s appointment has been terminated).
    • It has entered into a compromise or arrangement with its creditors.
    • It is in voluntary administration.

Restrictions on practitioners

The Insolvency Practitioners Regulation Act 2019 restricts:

  • non-arm’s length transactions between licensed insolvency practitioners and insolvent companies.
  • related party transactions between licensed insolvency practitioners and insolvent companies.

Last updated 19 December 2024