24 Sept 2020
VIVIEN JUDITH MADSEN-RIES AND HENRY DAVID LEVIN AS LIQUIDATORS OF DEBUT HOMES LIMITED (IN LIQUIDATION) v LEONARD WAYNE COOPER [2020] NZSC 100
- Citation
- [2020] NZSC 100
- Court
- Supreme Court
Where a director knowingly continues trading while the company is insolvent and with certainty of a substantial GST shortfall, and agrees to incur obligations he knows cannot be met, the director breaches ss135 and 136 and, where he fails to consider the interests of all creditors and acts in conflict to prefer secured/related-party interests, breaches s131; s138 did not excuse reliance on generalized advice; related-party security can be set aside under s299 to the extent necessary to prevent frustrative return of compensation; appropriate relief under s301 is restitutionary/compensatory tai…