MAY YAN WANG AND ANOR V COMMISSIONER OF INLAND REVENUE AND ANOR HC AK CIV-2010-404-3177

MAY YAN WANG AND ANOR V COMMISSIONER OF INLAND REVENUE AND ANOR HC AK CIV-2010-404-3177

The Court refused approval because the insolvent's verified statement of affairs materially and demonstrably omitted and misrepresented key interests (notably her effective contingent/indirect beneficial and control position in the UBNZ Trust and undisclosed BVI company interests), such non‑disclosure meant the proposal did not comply with the statutory requirements (s327) and therefore approval could not be granted under s333; further, the proposal was not reasonable or expedient given the substantial trust property potentially available to creditors and the public interest in investigation by the Official Assignee.

Citation
openlaw-7905561c_ff30_4242_8f30_b1fc26a3bf59.pdf
Parties
Insolvent / Judgment Debtor: May Yan Wang; Applicant / Provisional Trustee: Jeffrey Philip Meltzer; Creditor / Respondent: Commissioner of Inland Revenue; Creditor: Latitude Asia Limited; Judgment Creditor: Westpac New Zealand Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
6 December 2010
Procedural Posture
Application for Court Approval of Creditors' Proposal Under Insolvency Act 2006 / Post Creditor Meeting Application to Court Following Creditors' Acceptance; Concurrent Bankruptcy Proceedings Adjourned
Outcome
Application to approve the creditors' proposal refused
Legal Topics
Creditors' Proposal Approval, Disclosure in Statement of Affairs, Priority of Tax Debts (gst), Convertible Notes, Discretionary Trust Control and Beneficiaries, Public Interest in Insolvency, Trust Deed Powers
Insolvency Bankruptcy Trusts Tax Commercial Law Creditors' Proposal Approval Disclosure in Statement of Affairs Priority of Tax Debts (gst) +4 more

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Parties

May Yan Wang

Insolvent / Judgment Debtor

Jeffrey Philip Meltzer

Applicant / Provisional Trustee

Commissioner of Inland Revenue

Creditor / Respondent

Latitude Asia Limited

Creditor

Westpac New Zealand Limited

Judgment Creditor

Procedural Posture

Application for Court Approval of Creditors' Proposal Under Insolvency Act 2006 / Post Creditor Meeting Application to Court Following Creditors' Acceptance; Concurrent Bankruptcy Proceedings Adjourned

Legal Issues

  1. 1 Whether proposal complied with statutory disclosure requirements (s327 statement of affairs)
  2. 2 Whether proposal provided for payment of priority debts (GST) and trustee fees (s333(4))
  3. 3 Whether terms of the proposal are reasonable and benefit the general body of creditors (s333(3)(b))

Ratio Decidendi

The Court refused approval because the insolvent's verified statement of affairs materially and demonstrably omitted and misrepresented key interests (notably her effective contingent/indirect beneficial and control position in the UBNZ Trust and undisclosed BVI company interests), such non‑disclosure meant the proposal did not comply with the statutory requirements (s327) and therefore approval could not be granted under s333; further, the proposal was not reasonable or expedient given the substantial trust property potentially available to creditors and the public interest in investigation by the Official Assignee.

Court Disposition

Application to approve the creditors' proposal refused

Orders

  • Application to approve proposal refused
  • Bankruptcy proceeding adjourned to next day's list