ANTHONY BUNTING, ELAINE TASSIE, GARY RAYMOND COOPER AND JANET MARY COOPER V JOHN BUCHANAN HC AK CIV 2011-404-003865

ANTHONY BUNTING, ELAINE TASSIE, GARY RAYMOND COOPER AND JANET MARY COOPER V JOHN BUCHANAN HC AK CIV 2011-404-003865

Application to terminate liquidation dismissed because unit owners are contingent creditors, there is a real and unpredictable prospect of insolvency if claims succeed, the applicants' proposed protections did not adequately preserve the company's assets and income stream for creditors, and public interest and the need for liquidator investigations required the liquidation to continue.

Citation
openlaw-c2838eb5_6d6a_487b_8290_c283338a6926.pdf
Parties
Applicants / Shareholders: Anthony Bunting, Elaine Tassie, Gary Raymond Cooper and Janet Mary Cooper; First Respondent / Liquidator: John Buchanan; Second Respondents / Unit Owners: Royden Brett Allnut, Diane Patricia Allnut and Jane Nemary Olson; Third Respondents: Gary Hugh Chambers, Denise Cathy Chambers and Davenports Harbour Trustee (2008) Limited; Fourth Respondent: The Importer Brassware Limited; Fifth Respondents: Frederick Joseph Purvis and Susan Elizabeth Purvis
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 April 2012
Procedural Posture
Application to Terminate Liquidation Under Companies Act 1993 (s 250) / Judgment (post Hearing)
Outcome
Application to terminate the liquidation dismissed; liquidation continues.
Legal Topics
Termination of Liquidation, Creditor Status of Contingent Claims, Liquidator Duties, Public Interest in Liquidation, S 250 Companies Act 1993, S 307 Companies Act 1993
Company Law Insolvency Civil Procedure Contract Law Property Law Termination of Liquidation Creditor Status of Contingent Claims Liquidator Duties +3 more

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Parties

Anthony Bunting, Elaine Tassie, Gary Raymond Cooper and Janet Mary Cooper

Applicants / Shareholders

John Buchanan

First Respondent / Liquidator

Royden Brett Allnut, Diane Patricia Allnut and Jane Nemary Olson

Second Respondents / Unit Owners

Gary Hugh Chambers, Denise Cathy Chambers and Davenports Harbour Trustee (2008) Limited

Third Respondents

The Importer Brassware Limited

Fourth Respondent

Frederick Joseph Purvis and Susan Elizabeth Purvis

Fifth Respondents

Procedural Posture

Application to Terminate Liquidation Under Companies Act 1993 (s 250) / Judgment (post Hearing)

Legal Issues

  1. 1 Whether unit owners are creditors for purpose of s 250
  2. 2 Whether it is just and equitable to terminate the liquidation
  3. 3 Whether applicants' proposed protections adequately safeguard creditors

Ratio Decidendi

Application to terminate liquidation dismissed because unit owners are contingent creditors, there is a real and unpredictable prospect of insolvency if claims succeed, the applicants' proposed protections did not adequately preserve the company's assets and income stream for creditors, and public interest and the need for liquidator investigations required the liquidation to continue.

Court Disposition

Application to terminate the liquidation dismissed; liquidation continues.

Orders

  • Application to terminate the liquidation of Silverdale Developments (2007) Limited dismissed.
  • Liquidation of Silverdale Developments (2007) Limited to continue and liquidator to remain in office.