FINNIGAN AND HORROCKS V BUTCHER AND BUTCHER HC WHA CIV-2011-488-301

FINNIGAN AND HORROCKS V BUTCHER AND BUTCHER HC WHA CIV-2011-488-301

The court fixed the Butchers' claim at $193,120.57 and the Burgesses' claim at $460,878.13 on the evidence and accounting materials presented; held the 26 February 2010 special resolution valid by reason of subsequent ratification by Hammonds Trustees Ltd and therefore the original liquidators were validly appointed and entitled to statutory remuneration, and fixed the original liquidators' remuneration at $55,364.00 including GST and disbursements while allowing legal fees from the liquidation of $7,338.50 (deducting a fourth invoice charged to the liquidators personally).

Citation
openlaw-326d3ff7_e728_4305_baa0_147774fa3601.pdf
Parties
Applicant (current Liquidator): Peri Finnigan; Applicant (current Liquidator): Roy Horrocks; Respondent (claimant): Carl David George Butcher; Respondent (claimant): Lydia Kate Butcher
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 September 2012
Procedural Posture
Company Liquidation Proceeding (dragon Flyte Farm Ltd in Liquidation) / High Court Judgment Resolving Creditor Claims, Validity of Appointment and Liquidators' Remuneration
Outcome
Judgment for applicants (current liquidators) fixing claims, validating prior resolution and fixing remuneration
Legal Topics
Liquidation, Appointment of Liquidators, Remuneration of Liquidators, Shareholder Resolutions and Special Resolution, Quantification of Creditor Claims, S 174 Unfairly Prejudicial Conduct, Quantum Meruit, Trustees' Powers and Ratification
Companies Law Insolvency Law Trust Law Civil Procedure Liquidation Appointment of Liquidators Remuneration of Liquidators Shareholder Resolutions and Special Resolution +4 more

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Parties

Peri Finnigan

Applicant (current Liquidator)

Roy Horrocks

Applicant (current Liquidator)

Carl David George Butcher

Respondent (claimant)

Lydia Kate Butcher

Respondent (claimant)

Procedural Posture

Company Liquidation Proceeding (dragon Flyte Farm Ltd in Liquidation) / High Court Judgment Resolving Creditor Claims, Validity of Appointment and Liquidators' Remuneration

Legal Issues

  1. 1 What was the quantum of the Butchers' claim at date of liquidation
  2. 2 What was the quantum of the Burgesses' claim at date of liquidation
  3. 3 Whether the shareholders' special resolution of 26 February 2010 validly appointed the original liquidators

Ratio Decidendi

The court fixed the Butchers' claim at $193,120.57 and the Burgesses' claim at $460,878.13 on the evidence and accounting materials presented; held the 26 February 2010 special resolution valid by reason of subsequent ratification by Hammonds Trustees Ltd and therefore the original liquidators were validly appointed and entitled to statutory remuneration, and fixed the original liquidators' remuneration at $55,364.00 including GST and disbursements while allowing legal fees from the liquidation of $7,338.50 (deducting a fourth invoice charged to the liquidators personally).

Court Disposition

Judgment for applicants (current liquidators) fixing claims, validating prior resolution and fixing remuneration

Orders

  • The amount of the Butchers' claim is fixed at $193,120.57 NZD
  • The amount of the Burgesses' claim is fixed at $460,878.13 NZD