24 Jun 2016
C D OWENS AND D S VANCE AS LIQUIDATORS OF ALUMINIUM PLUS WELLINGTON LTD (IN LIQUIDATION) v A C SHAW AND I A SHAW AS TRUSTEES OF THE I&A SHAW FAMILY TRUST [2016] NZHC 1400
- Citation
- [2016] NZHC 1400
- Court
- High Court
The Trust was released from liability by a mutual agreement between the directors and trustees, so trustees were not liable for the Company's contractual debts; however the directors acted recklessly and negligently when they unilaterally abandoned the purchase and supply funding arrangement (exposing creditors to loss) in breach of ss135 and137, and accordingly the Court ordered directors to compensate the Company under s301 for the losses flowing from that breach while rejecting the s136 claim because the purchase and supply arrangement gave reasonable grounds to believe payment would be ma…