20 Feb 2019
INSTALLER SERVICES (HUTT VALLEY) LIMITED v COLSON [2019] NZHC 210
- Citation
- [2019] NZHC 210
- Court
- High Court
Payments labelled 'shareholder salary' totaling NZD 44,800 were remuneration and not recoverable as distributions; other 'additional drawings' totaling NZD 81,000 were distributions and, on applying a 50% contingency for disputed franchise fees, the company would have been insolvent immediately after the 2012 distribution; accordingly NZD 19,943 (2012 additional drawings) is repayable by shareholder Andrew Colson under s56 and Mr and Mrs Colson are jointly and severally liable to contribute NZD 19,943 under s301 absent shareholder repayment; the 2013 distribution NZD 61,057 is permitted under…