SARGISON & ANOR V MCCABE & ORS HC AK CIV 2012-404-003300

SARGISON & ANOR V MCCABE & ORS HC AK CIV 2012-404-003300

The Court found both respondents fell within s261(2) (employee or person with knowledge of the company's affairs), and, applying the balancing exercise between the liquidators' legitimate need to reconstitute company knowledge/public interest in proper liquidation and the examinees' interests, exercised its discretion to order examination under s266(2)(a) and production of company books and records under s266(2)(b); examinations to be supervised by a Judge or Associate Judge and production required five working days before examination.

Citation
openlaw-ea10ec8c_fd60_42ee_9052_b86c0260a2b2.pdf
Parties
Applicant: Paul Graham Sargison; Applicant: Simon Dalton; First Respondent: David Allen McCabe; Second Respondent: Megan Renee McCabe; Third Respondent: Michaela Bleser
Court
High Court
Jurisdiction
New Zealand
Judgment Date
29 November 2012
Procedural Posture
Company Liquidation Application Under Companies Act 1993 S266 / Hearing (judgment Reserved and Delivered)
Outcome
Application under s266(2) granted; orders made for examination and production of documents; costs awarded to the liquidators
Legal Topics
Liquidator Powers, Section 266, Section 261 Notices, Examination of Persons, Production of Documents, Costs
Company Law Insolvency Liquidation Civil Procedure Liquidator Powers Section 266 Section 261 Notices Examination of Persons +2 more

Case Brief

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Parties

Paul Graham Sargison

Applicant

Simon Dalton

Applicant

David Allen McCabe

First Respondent

Megan Renee McCabe

Second Respondent

Michaela Bleser

Third Respondent

Procedural Posture

Company Liquidation Application Under Companies Act 1993 S266 / Hearing (judgment Reserved and Delivered)

Legal Issues

  1. 1 Whether the first and third respondents are persons to whom s261 applies
  2. 2 Whether the Court should exercise its discretion to order examination under s266(2)(a)
  3. 3 Whether the Court should order production of books, records and documents under s266(2)(b)

Ratio Decidendi

The Court found both respondents fell within s261(2) (employee or person with knowledge of the company's affairs), and, applying the balancing exercise between the liquidators' legitimate need to reconstitute company knowledge/public interest in proper liquidation and the examinees' interests, exercised its discretion to order examination under s266(2)(a) and production of company books and records under s266(2)(b); examinations to be supervised by a Judge or Associate Judge and production required five working days before examination.

Court Disposition

Application under s266(2) granted; orders made for examination and production of documents; costs awarded to the liquidators

Orders

  • First and Third Respondents (David Allen McCabe and Michaela Bleser) to attend before the Court when required by the Registrar and be examined on oath or affirmation before a Judge or Associate Judge by counsel for the liquidators on matters relating to the business, accounts and affairs of Club CrowBar Ltd (in...
  • Not later than five working days before the appointed date for examination, the respondents must produce to the liquidators all books, records or documents of Club CrowBar Ltd (in liquidation) in their possession or under their control, including but not limited to: all chequebooks, cheque butts and deposit books...