30 Mar 2006
MASON & MELTZER V LEWIS CA CA267/04
- Citation
- openlaw-169e3cd5_2133_4fef_ae3b_a02d2dc57298.pdf
- Court
- Court of Appeal
The Companies Act s135 imposes an objective duty on directors not to allow trading that creates a substantial risk of serious loss to creditors; on the facts the Lewises failed to monitor the company and permitted trading while it was insolvent and without proper accounting records, so they breached s135 and s300, s138 did not avail them, and the matter must be remitted to the High Court to quantify appropriate relief under ss300 and 301.