The Insolvency Practitioners Regulation Act 2019 (the Act) came into force on 1 September 2020. The Act establishes a co-regulatory scheme, requiring insolvency practitioners operating in New Zealand to be licensed by an accredited body. The purpose of the Act is to promote quality, expertise, and integrity in the profession of insolvency practitioners.
According to clause 5(2) of Schedule 1 of the Act , a person who is a liquidator of a company and who, on the first anniversary of the Act, is not a licensed insolvency practitioner must resign on the first anniversary and section 283 of the Companies Act 1993 applies (that is, what happens when a liquidator vacates office).
The date of the first anniversary is 1 September 2021. A liquidator of a company (or any other entity for example, a limited partnership, incorporated society or a charitable trust) who is not a licensed insolvency practitioner must resign on this date or transfer the liquidation to a licensed insolvency practitioner.
The following notice was published in the New Zealand Gazette on 23 July 2021.