12 Sept 2019
FORDYCE ROAD DEVELOPMENT LTD (IN LIQ) v KHAN [2019] NZHC 2288
- Citation
- [2019] NZHC 2288
- Court
- High Court
Mr Khan, as sole director, allowed Fordyce to incur substantial obligations without realistic funding or objectively reasonable grounds to believe the company could meet them, and failed to exercise requisite care, thereby breaching ss135,136 and137; he also dishonestly misapplied and concealed settlement funds, breaching s131 and fiduciary duties; Mrs Khan received company funds with actual knowledge making retention unconscionable; accordingly compensation, restoration and equitable remedies were ordered.