This Act is the Insolvency (Cross-border) Act 2006.
Insolvency (Cross-border) Act 2006
| Jurisdiction | New Zealand |
| Citation | 2006 No 57 |
| Reference | 2006 No 57 |
| Record Number | DLM389626 |
| Act Number | 57 |
| Type of Document | Act |
This Act comes into force on a date to be appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
The purpose of this Act is to—
- implement the Model Law on Cross-Border Insolvency adopted by the United Nations Commission on International Trade Law on 30 May 1997, and approved by the General Assembly of the United Nations on 15 December 1997, (amended and supplemented in order to apply to New Zealand) in New Zealand; and
provide a framework for facilitating insolvency proceedings when—
- a person is subject to insolvency administration (whether personal or corporate) in 1 country, but has assets or debts in another country; or
- more than 1 insolvency administration has commenced in more than 1 country in relation to a person.
In this Act,—
insolvency proceeding means a collective judicial or administrative proceeding, including an interim proceeding, pursuant to a law relating to insolvency (whether personal or corporate) in which the assets and affairs of a debtor are subject to control or supervision by a judicial or other authority competent to control or supervise that proceeding, for the purpose of reorganisation or liquidation
Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act.
In interpreting this Act, reference may be made to—
- the Model Law on Cross-Border Insolvency adopted by the United Nations Commission on International Trade Law on 30 May 1997, and approved by the General Assembly of the United Nations on 15 December 1997; and
- any document that relates to the Model Law on Cross-Border Insolvency that originates from the United Nations Commission on International Trade Law, or its working group for the preparation of the Model Law on Cross-Border Insolvency.
Subsection (1) does not limit article 8 of Schedule 1.
This Act binds the Crown.
Schedule 1 applies in the circumstances set out in article 1 of that schedule.
This section applies to a person referred to in article 1(1) of Schedule 1.
If a court of a country other than New Zealand has jurisdiction in an insolvency proceeding and makes an order requesting the aid of the High Court in relation to the insolvency proceeding of a person to whom this section applies, the High Court may, if it thinks fit, act in aid of and be auxiliary to that court in relation to that insolvency proceeding.
In acting in aid of and being auxiliary to a court in accordance with subsection (2), the High Court may exercise the powers that it could exercise in respect of the matter if it had arisen within its own jurisdiction.
Rules may be made under section 148 of the Senior Courts Act 2016—
- relating to the procedure of the High Court under this Act; and
- relating to the manner in which an application under Schedule 1 must be made to the High Court; and
- to give effect to this Act.
On the recommendation of the Minister, the Governor-General may, by Order in Council, make regulations designating a class of insolvency proceeding, in a designated country other than New Zealand (referred to in this section as the foreign country), to be a specified insolvency proceeding.
The Minister must not recommend the making of regulations under subsection (1) unless the Minister is satisfied that—
- New Zealand and the foreign country are both parties to an agreement for the mutual recognition of insolvency proceedings; and
- the level of recognition given to the interests of New Zealand debtors and creditors in an insolvency proceeding in the foreign country and the terms of the agreement referred to in paragraph (a) provide appropriate protection for the interests of New Zealand debtors and creditors.
A regulation made under subsection (1) may specifically modify or vary Schedule 1 in its application to a specified insolvency proceeding.
Subsection (3) prevails over section 7.
Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
The Governor-General may, by Order in Council, make regulations prescribing forms to be used for the purposes of this Act, and the matters to be specified in the forms.
Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
If an insolvency proceeding has started before the commencement of this Act, the law governing that insolvency proceeding is the law that would have applied if this Act had not been passed.
For the purposes of subsection (1), an insolvency proceeding is taken to have started on the date upon which the judicial manager, Official Assignee, statutory manager, receiver, liquidator, or administrator was appointed.
The enactments specified in Schedule 2 are amended in the manner indicated in that schedule.
Empowering provision: s 7
[The provisions of this schedule correspond, for the most part, to the provisions of the Model Law on Cross-Border Insolvency adopted by the United Nations Commission on International Trade Law on 30 May...
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