Companies in Liquidation NZ
When a New Zealand company cannot pay its debts, it may be placed into liquidation. The company's status on the Companies Register shows this, and checking that status is one of the most important things you can do before dealing with a company.
What does liquidation mean?
Liquidation is a formal process where a liquidator is appointed to wind up a company. The liquidator takes control of the company's assets, sells them, and distributes the proceeds to creditors according to legal priorities. At the end of the process, the company is usually removed from the register and ceases to exist.
A company in liquidation is still a legal entity while the process runs, but it is no longer operating normally. Dealing with a company in liquidation carries real risk, because it may be unable to pay for goods or services it orders.
How status appears on the register
The Companies Register shows a status for each company. The statuses you are most likely to see include:
- Registered — the company is active and in good standing on the register
- In Liquidation — a liquidator has been appointed to wind the company up
- In Receivership — a receiver has been appointed over some or all of the company's assets, usually by a secured creditor
- In Receivership & In Liquidation — both processes are under way at the same time
- Removed — the company has been struck off the register and no longer exists as a legal entity
The register also records related filings, such as notices of appointment of a liquidator, which appear in the company's document history.
How to check a company's current status
Search for the company by name, NZBN or company number, and look at the status shown on its record. Because statuses can change at any time, check the register as close as possible to when you intend to rely on the information.
Reports on this site are generated fresh from the live registers when you order, and each report shows the date and time the information was retrieved, so you know exactly how current the status is.
Liquidation is different from personal insolvency
Liquidation applies to companies. Personal insolvency processes — bankruptcy, the No Asset Procedure and Summary Instalment Orders — apply to individuals and are recorded on the separate Insolvency Register. A director of a company in liquidation is not automatically personally insolvent, and a company being liquidated says nothing by itself about the personal finances of its directors.
Frequently asked questions
Can a company in liquidation still trade?
A company in liquidation is controlled by its liquidator and is generally being wound up, not trading normally. Treat any dealings with it with caution.
Is receivership the same as liquidation?
No. A receiver is appointed to recover money for a secured creditor, while a liquidator winds up the whole company. A company can be in both processes at once.
Can a removed company come back?
In some circumstances a company can be restored to the register. Until it is, it does not exist as a legal entity.
Search for a New Zealand company
Look up any registered New Zealand company by name, NZBN or company number, and order a detailed report generated fresh from the live registers.
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