24 Feb 2014
COOL CARS (WHOLESALE) LIMITED (IN LIQUIDATION) v SHARMA & ANOR, [2014] NZHC 256
- Citation
- COOL CARS (WHOLESALE) LIMITED (IN LIQUIDATION) v SHARMA & ANOR, [2014] NZHC 256
- Court
- High Court
On the facts the first defendant entered an unconditional purchase agreement without reasonable grounds to believe the company could perform the obligation and thereby carried on business in a manner likely to create a substantial risk of serious loss to creditors; accordingly she breached ss 135, 136 and 137 of the Companies Act 1993 and summary judgment is appropriate for the plaintiff for the losses proved.