13 May 2022
SMARTPAY LTD v KUMAR [2022] NZHC 997
- Citation
- [2022] NZHC 997
- Court
- High Court
Kumar breached ss 131, 135 and 136 because OCL was from near inception balance-sheet and cashflow insolvent, had only nominal paid-up capital, received no revenue under the Spark agreement (revenue flowed to HQ), had no legally enforceable support from related companies, and Kumar failed to consider OCL's separate interests and allowed it to incur obligations it could not meet; therefore he is liable for breaches and the Court will consider a contribution order under s 301 (quantum deferred), and the defendant's proposed expert evidence was excluded as inadmissible and an adjournment was refu…
- Section 131 companies act 1993 (good faith/best interests)
- Section 135 companies act 1993 (risk of serious loss to creditors)
- Section 136 companies act 1993 (incurring obligations reasonably)
- Section 301 companies act 1993 (claims by creditors/liquidator)
- Admissibility of expert evidence
- Causation for contribution orders