New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Share transfer as security
  • 18 Apr 2013

    ZHANG V DONG HC AK CIV-2012-404-2223

    Citation
    openlaw-749a7c6d_9365_4f89_a550_2f215cf523b9.pdf
    Court
    High Court

    The court accepted the plaintiff's evidence that an antecedent oral agreement existed making the NZ$1,000,000 a loan secured by a temporary transfer of shares; this was proven by contemporaneous actions (no beneficial exercise of shareholder rights, no due diligence, salary paid without work, payments described as interest, subsequent draft loan/security agreements and emails) and credibility findings; accordingly the plaintiff was entitled to judgment for repayment plus interest.