New Zealand Case Law: Decisions & Judgments

Topic

Creditors' meeting

Legal area

Court

12 Dec 2022

FRANCIS v INNES [2022] NZHC 3354

Citation

[2022] NZHC 3354
Court

High Court

The Court declined to validate the 25 November shareholders' resolution because it contravened s122, but exercised its power under s241(2)(c)(iii) to appoint the first applicants as joint and several liquidators because the company was insolvent, there was urgency, the first applicants had already undertaken critical investigatory work, their appointment served the best interests of creditors and ensured continuity and perceived independence during the liquidation.
30 Oct 2020

MENZIES v AMERICAN EXPRESS INTERNATIONAL (NZ) INC [2020] NZHC 2858

Citation

[2020] NZHC 2858
Court

High Court

The Proposal is approved because it was in the prescribed form, properly notified, the provisional trustee's report complied with the Regulations, the required majority in number and three quarters in value voted in favour, and the Proposal is not unreasonable and benefits the general body of creditors under s333(3).
23 Jul 2020

TEMPEST LITIGATION FUNDERS LTD v DAVIES [2020] NZHC 1790

Citation

[2020] NZHC 1790
Court

High Court

Tempest acted unreasonably by making and persisting with unsubstantiated allegations of dishonesty and by seeking wholly unmeritorious and severe relief (including indefinite prohibition from acting as liquidator); the conduct warranted an award of indemnity costs, fixed at 80% of the claimed sum, resulting in an award of $37,646.08 in favour of Mr Davies.
16 Dec 2019

HENSHAW v ANZ NATIONAL BANK LIMITED [2019] NZHC 3330

Citation

[2019] NZHC 3330
Court

High Court

The application for approval of the proposal is adjourned because service of the application and meeting notice by email to two non‑responding creditors (and omission to notify a secured creditor) was not established as valid service, and because the trustee's report contains errors and unclear repayment calculations; the court indicates the proposal otherwise appears approvable but cannot finally approve until the trustee corrects the report and demonstrates valid service to all known creditors.
4 Jul 2018

R G GARLICK and D L GARLICK [2018] NZHC 1634

Citation

R G GARLICK and D L GARLICK [2018] NZHC 1634
Court

High Court

The court granted approval because the statutory requirements of ss 327, 330 and 331 were satisfied, the proposals were accepted by the required majorities representing all indebtedness, the proposals were reasonable and beneficial to creditors, and no grounds under s 333(3) existed to refuse approval.
18 Oct 2016

MAWHINNEY v OFFICIAL ASSIGNEE [2016] NZHC 2487

Citation

[2016] NZHC 2487
Court

High Court

Interim relief was declined because the relief sought would improperly permit total non-compliance with statutory information‑gathering powers; the Assignee is entitled to investigate matters including trust and company affairs, confidentiality objections can be asserted and tested at examination or by court, and the balance of convenience and public interest in efficient administration of insolvency favoured the Assignee.
18 Apr 2016

Re Diston [2016] NZHC 722

Citation

[2016] NZHC 722
Court

High Court

The court found statutory requirements (ss327, 328, s333(4)) satisfied, the enhanced terms and increased contributions meant the proposal was not derisory and was likely preferable to a bankruptcy in commercial terms, the majority creditors' approval (including banks) was entitled to weight, and no sufficient expediency reason existed to refuse approval; accordingly the proposal was approved under s333.
18 Dec 2015

BAKER & Ors v GILBERT [2015] NZHC 3311

Citation

[2015] NZHC 3311
Court

High Court

The Court was satisfied the creditors' meeting result was determined by votes of related creditors and that the outcome unreasonably prejudiced external creditors; accordingly under s 245A the tainted resolution of 8 May 2015 was set aside and the appropriate remedial order was to direct a fresh creditors' meeting (with related creditors barred from voting) rather than for the court to appoint liquidators directly, consistent with the statutory scheme privileging creditors' meetings for confirming or replacing shareholder-appointed liquidators.
13 Oct 2015

STOJAN STOJKOV v IMRAN MOHAMMED KAMAL [2015] NZHC 2513

Citation

[2015] NZHC 2513
Court

High Court

The liquidator breached the statutory duty under s245(1)(b)(iii) by refusing to call a creditors' meeting after receiving timely written notice; his conduct was unreasonable and outside the ordinary run of cases, warranting deprivation of the usual indemnity and an order that he pay the applicant's costs personally assessed at category 2.
24 Mar 2015

TOMANOVICH HOLDINGS LIMITED v GIBBSTON WATER SERVICES LIMITED (IN LIQUIDATION) [2015] NZHC 541

Citation

[2015] NZHC 541
Court

High Court

The originating application seeking termination of the voluntary liquidation and appointment of a provisional liquidator was unjustified in urgency and unnecessary; no evidence of imminent dissipation existed and the proper forum to challenge the liquidator was the creditors' meeting; plaintiff entitled to costs for its initial liquidation claim up to 3 December 2014 on a 2B basis and disbursements, but its originating application is dismissed and plaintiff must pay RHG and Mr Guthrey $2,000 (inclusive) and the defendant $1,000 (inclusive), with the latter set off against the plaintiff's awar…