RITANZ: Its new gatekeeper role and the intervention of natural justice

Recently, Mr Justice Muir of the New Zealand High Court in Grant v Restructuring Insolvency & Turnaround Association New Zealand Inc1 heard an application by Mr Grant for judicial review of a decision by the Restructuring Insolvency and Turnaround Association of New Zealand (RITANZ) to decline his application for membership. The grounds for this decision was that Mr Grant did not satisfy the “good character” requirement for RITANZ membership. Before considering the judgment, this note outlines the background to the application and explains how under the new statutory framework. For some insolvency practitioners, membership of RITANZ is a condition that must be met before they are eligible to apply to be licensed. The case highlights that RITANZ in this new gatekeeper role, when evaluating membership applications, is required to act in accordance with the principles of natural justice and in accordance with administrative law principles2 and any decision to decline an application is potentially reviewable by the High Court.