Companies Act, Liquidation and email being an essential service

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johnmo

113 posts

Master Geek

#68736 27-Sep-2010 16:12

Has anyone anything to add to the concept that "at least one" liquidator is currebtly trying on.

Email is an "essential service" according to s275 of the companies act.

http://www.legislation.govt.nz/act/public/1993/0105/latest/DLM321943.html

At least it implies that payment is up there with the liquidators fees :)

graemeh

2078 posts

Uber Geek

#385040 27-Sep-2010 17:04

It does seem to meet the definition of "telecommunications services" as outlined in the act so I wouldn't say the liquidator is "trying on".

You're right up there with the liquidator themselves for payment so there appears to be no reason to refuse to supply them.

richms

28189 posts

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#385043 27-Sep-2010 17:06

Huh? what is this in relation to?

Richard rich.ms

robbyp

1199 posts

Uber Geek

#385049 27-Sep-2010 17:15

johnmo: Has anyone anything to add to the concept that "at least one" liquidator is currebtly trying on.

Email is an "essential service" according to s275 of the companies act.

http://www.legislation.govt.nz/act/public/1993/0105/latest/DLM321943.html

At least it implies that payment is up there with the liquidators fees :)

Telecommunications services would be related to phone, not internet services, I would say, but these things are so badly written and open ended, they could be twisted to mean anything. If they need an email address, point them towards gmail, whic is a free service. You will find that many ISPs will have in their terms that they may cut off supply of internet services, if they get information that you are no longer solvent.

richms

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#385051 27-Sep-2010 17:19

Thats not badly written, its clearly been written to include any form of communication by wire or radio that isnt broadcast, so you cant get your sky as telecommunication, but internet, hosting, email, fax, mobile and fixed phones are all included in it.

You get first dibs on payment for services invoiced after the liquidation was started to unless you think the company is actually going to liquidate for nothing then you have zero risk. IMO supplying to the liquidators is less risky than a regular company.

Richard rich.ms

graemeh

2078 posts

Uber Geek

#385055 27-Sep-2010 17:27

richms: You get first dibs on payment for services invoiced after the liquidation was started to unless you think the company is actually going to liquidate for nothing then you have zero risk. IMO supplying to the liquidators is less risky than a regular company.

Exactly. The supplier is right at the top of the list for payment, alongside the liquidator. Any payment owed to the supplier reduces the amount for the liquidator to pay themselves so you can bet they will be very careful to ensure both they and the supplier are paid in full.

johnmo

113 posts

Master Geek

#385077 27-Sep-2010 18:06

My reason for posting was to bring this to attention of companies suppying email services.

It certainly appears that "while a liquidation is in process" email needs to be continued to be supplied. Of course payment is more certain as you are number 1 equal on the list. Of course services provided prior to liquidation but not paid for are not covered any differently from other unsecured creditors for that period.

I wonder how many email providers are aware of this?

Has anyone tested this?

Do Voip services come into this meaning?

Does an ADSL connection (or Naked DSL or Wireless) come into this definition as without it then email and VOIP are unable to be provided?

richms

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#385078 27-Sep-2010 18:10

johnmo: My reason for posting was to bring this to attention of companies suppying email services.

It certainly appears that "while a liquidation is in process" email needs to be continued to be supplied. Of course payment is more certain as you are number 1 equal on the list. Of course services provided prior to liquidation but not paid for are not covered any differently from other unsecured creditors for that period.

I wonder how many email providers are aware of this?

Has anyone tested this?

I would like to know as well.

johnmo:
Do Voip services come into this meaning?

I would say so, since it is communicton over a wire or wireless or other medium

johnmo:
Does an ADSL connection (or Naked DSL or Wireless) come into this definition as without it then email and VOIP are unable to be provided?

Again, they clearly fit the simple definition of the act, so yes they would.

Richard rich.ms

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webwat

2036 posts

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#385216 27-Sep-2010 22:34

Yes it looks like VoIP, email, web browsing, and mabe servers too would all be included by the device-to-device "information" criteria. It doesnt say in that section that you can't put up the price or restrict speed/priority, although I suspect liquidators would be keen on testing that if ISPs tried to enforce restrictions at the original price. I didn't know about this either :)

Time to find a new industry!