New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Duty of care (s137)

  • 4 Nov 2016

    OWENS AND VANCE v COLEMAN [2016] NZHC 2644

    Citation
    [2016] NZHC 2644
    Court
    High Court

    The court held that on the available evidence Mr Coleman must repay the overdrawn director account ($51,886.59) and the $86,575 paid to Guyon Holdings Ltd (including the alter‑ego finding); the defendant breached s137 in relation to tax obligations and must personally compensate the company for the IRD liability of $243,555.75. The court declined to determine the broader s301 claims for the full creditor shortfall and liquidators' costs until plaintiffs file further evidence (including expert opinion) to establish with specificity the point of insolvency, causal nexus and quantum; plaintiffs…

    • Directors' duties
    • Reckless trading (s135)
    • Good faith (s131)
    • Duty of care (s137)
    • Section 301 contribution orders
    • Alter ego/related party transactions

  • 24 Sept 2015

    CENTRAL TYRES WAIPUKURAU LIMITED (IN LIQUIDATION) & ORS v PALLESEN & ORS [2015] NZHC 2324

    Citation
    [2015] NZHC 2324
    Court
    High Court

    On the evidence and sworn interview, the liquidators demonstrated a good arguable case of breaches of ss135,137 and s194 and potential personal liability under ss300/301, identified assets in the director's name and a recent suspicious transfer indicating a real risk of dissipation; accordingly a without‑notice freezing order was necessary in the interests of justice and was granted.

    • Director's duties
    • Reckless trading (s135)
    • Duty of care (s137)
    • Accounting records (s194)
    • Personal liability (ss300,301)
    • Freezing order / asset preservation