RE GO TO COLLECTION LIMITED [2022] NZHC 3471

RE GO TO COLLECTION LIMITED [2022] NZHC 3471

A short one‑month extension of the convening period and corresponding extension of the s239Y termination notice period was justified because it advanced the statutory objects of voluntary administration by preserving prospects of sale as going concerns and a potential DOCA, avoided likely prejudice from holiday unavailability, the company could meet its obligations during the period, the extension was limited in duration and unlikely to prejudice creditors, and dispensing with personal service was proportionate given notification directions.

Citation
[2022] NZHC 3471
Parties
Administrators (applicants): Malcolm Granthollis and John Howard Ross Fisk; Company: Go To Collection Limited (Administrators Appointed)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
16 December 2022
Procedural Posture
Application Under Companies Act 1993 (part 15 a and Part 19) for Extensions Under Ss 239 at and 239 Y / Without‑notice Originating Application for Interim Extension of Convening Period and Employment Notice Period
Outcome
Application granted
Legal Topics
Voluntary Administration, Watershed Meeting, Extension of Convening Period, Extension of Employment Termination Notice, Without‑notice Relief
Company Law Insolvency Employment Law Civil Procedure Voluntary Administration Watershed Meeting Extension of Convening Period Extension of Employment Termination Notice +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 13 Party arguments 1 Amounts and remedies 4
Sign in to unlock

Parties

Malcolm Granthollis and John Howard Ross Fisk

Administrators (applicants)

Go To Collection Limited (Administrators Appointed)

Company

Procedural Posture

Application Under Companies Act 1993 (part 15 a and Part 19) for Extensions Under Ss 239 at and 239 Y / Without‑notice Originating Application for Interim Extension of Convening Period and Employment Notice Period

Legal Issues

  1. 1 Whether the convening period under s239AT(2) should be extended to 31 January 2023
  2. 2 Whether the 14‑day period for lawful termination under s239Y(3) should be extended to 31 January 2023
  3. 3 Whether the application could be determined without personal service (without notice)

Ratio Decidendi

A short one‑month extension of the convening period and corresponding extension of the s239Y termination notice period was justified because it advanced the statutory objects of voluntary administration by preserving prospects of sale as going concerns and a potential DOCA, avoided likely prejudice from holiday unavailability, the company could meet its obligations during the period, the extension was limited in duration and unlikely to prejudice creditors, and dispensing with personal service was proportionate given notification directions.

Court Disposition

Application granted

Orders

  • Convening period under s239AT(2) of the Companies Act 1993 in the administration of Go To Collection Limited is extended to an end date of 31 January 2023 instead of 22 December 2022.
  • Period for applicants to give notice of termination of contracts of employment under s239Y(3) is extended to an end date of 31 January 2023 instead of 22 December 2022, with any wages or salary that accrue under such contracts being an expense of the administration under sch 7 cl 1(1)(b) of the Act.