New Zealand Case Law: Decisions & Judgments

Topic

Distribution of surplus funds

Legal area

Court

13 Nov 2020

STENT v BODY CORPORATE 324525 [2020] NZHC 3007

Citation

[2020] NZHC 3007
Court

High Court

S131 permits the Body Corporate to choose whether to distribute surplus funds but, if it does, the surplus must be distributed among unit owners in the same proportions in which the money was raised from unit owners (ie by levies calculated by ownership or utility interest); 'raised' does not mean the proximate source of funds such as settlement proceeds, therefore Ms Stent, having contributed by levy, is entitled to her proportional share.
6 May 2014

ADAMS AND BUCHANAN (AS LIQUDIATORS OF STARPLUS HOMES LTD (IN LIQUIDATION)) v SUN [2014] NZHC 913

Citation

[2014] NZHC 913
Court

High Court

The Court held the liquidators were necessary parties and r14.6(4)(c) applied; their decision to bring a s284 directions application was justified given limitations of s200 to mortgagees and the need to place liquidation context and statutory protection before the Court; however because substantial work also benefited preferential and unsecured creditors, one-third of the claimed costs should be deducted and two-thirds paid from the fund, resulting in an award of $24,650.34 plus agreed disbursements and filing/service costs; leave reserved on detailed incidence among claimants.
3 Mar 2006

AGNEW AND WALLER AND ANOR V PARDINGTON AND JARROLD AND ANOR CA CA109/05

Citation

openlaw-5efcc0b8_83f3_4da9_a3cc_7d0f20668fe1.pdf
Court

Court of Appeal

The surplus proceeds of The Building Depot Limited are to be applied first to Fletcher to the extent of its secured indebtedness, then to other secured creditors according to their securities and priorities, and any remaining surplus to the Official Assignee as liquidator; the first respondents are responsible for ensuring subordinate creditors are paid in accordance with their priorities — orders made by consent.
9 Nov 2005

REGISTRAR OF FRIENDLY SOCIETIES V AUCKLAND WORKINGMENS CLUBHC AK CIV-2003-404-2391

Citation

openlaw-6aeabf1b_cac1_4c2e_9923_588bb1811295.pdf
Court

High Court

The Court granted the Liquidators' application for directions: surplus funds are to be distributed in equal shares to all persons who were life or subscribed members as at 6 March 2001, excluding deceased persons; the Liquidators are to compile and settle membership lists by specified steps (including exhibits, enquiries, advertising and final determination of disputes) and may either redistribute unclaimed cheques pro rata or seek further directions; leave reserved for further directions by memorandum to the Judge.

New Zealand Case Law

STENT v BODY CORPORATE 324525 [2020] NZHC 3007

ADAMS AND BUCHANAN (AS LIQUDIATORS OF STARPLUS HOMES LTD (IN LIQUIDATION)) v SUN [2014] NZHC 913

AGNEW AND WALLER AND ANOR V PARDINGTON AND JARROLD AND ANOR CA CA109/05

REGISTRAR OF FRIENDLY SOCIETIES V AUCKLAND WORKINGMENS CLUBHC AK CIV-2003-404-2391