New Zealand Case Law: Decisions & Judgments

Topic

Standing to apply for liquidation

Legal area

Court

13 May 2019

BEST INVEST NZ COMPANY LIMITED (In Interim Liquidation) v JAPAN BUSINESS CONSULTING COMPANY LIMITED [2019] NZHC 1037

Citation

[2019] NZHC 1037
Court

High Court

The court appointed interim liquidators for East Wind Company Limited and East Wind Nominee Company Limited because Best Invest demonstrated creditor standing with bank records showing substantial payments (c. $7.17m and c. $1.25m) and there was a real risk to assets due to absence of directors after the sole director's death; applications against the other four companies were dismissed for lack of sufficient evidence of dealings or standing, but without prejudice to renewal on new evidence. Interim liquidators' powers are limited to protecting and realising assets and their remuneration must…
20 May 2014

YAN v MAINZEAL PROPERTY AND CONSTRUCTION LIMITED (IN RECEIVERSHIP AND IN LIQUIDATION) CA105/2014 [2014] NZCA 190

Citation

[2014] NZCA 190
Court

Court of Appeal

RGREL: The Court set aside the High Court liquidation order against RGREL because by the time of hearing there were no undisputed debts due from RGREL (some alleged debts were accepted as not due or were secured/paid and the remainder were genuinely and substantially disputed) and it would be an abuse and premature to liquidate while core disputes remained unresolved. Isola: The Court dismissed the liquidators' appeal; the main statutory demand from Mainzeal had been paid and the KFL claim was substantially disputed and contingent, so the Judge properly exercised discretion under s241(4) to d…
17 Nov 2011

CULLEN V OTAHUHU ROVERS RUGBY LEAGUE FOOTBALL CLUB INCORPORATED HC AK CIV-2011-404-005266

Citation

openlaw-e8d3bd25_f14e_4cc2_9ac1_619c16f68b60.pdf
Court

High Court

Applicant lacked standing under s26(1) because he was no longer a member (committee validly terminated membership under clause 4(a) of the constitution) and was not a creditor (invoice was in the company name and the Disputes Tribunal found no debt and its order was not negated by the filing of an appeal); therefore the liquidation application was struck out.
4 Dec 2009

SINGH V PAPATOETOE WELDERS & ENGINEERING LIMITED HC AK CIV 2009-404-6936

Citation

openlaw-e121c4ce_664d_470b_8de2_ed45acb7dbcb.pdf
Court

High Court

Because there was a genuine dispute as to liability requiring a full hearing, the plaintiff could not establish the company owed an existing obligation and therefore lacked standing to bring winding-up proceedings; the application is dismissed.
7 Jun 2007

PEILUA AND FAITALA V AMITUANAI AND ANOR HC AK CIV 2006-404-2441

Citation

openlaw-ecfd1910_19ed_45bc_a5fd_0a0e729db971.pdf
Court

High Court

Leave was granted under s25(2)(f) to the plaintiffs to bring liquidation proceedings; the Court held that liquidation proceedings for a charitable trust must follow Companies Act Parts XVI and XVII with necessary modifications, that advertising and service (including Attorney‑General and secured creditor Westpac) are required, that a fresh proceeding should be filed with specific timetable, and that the substantive judgment on the original proceeding is entered for the defendants with costs reserved pending the liquidation outcome.

New Zealand Case Law

BEST INVEST NZ COMPANY LIMITED (In Interim Liquidation) v JAPAN BUSINESS CONSULTING COMPANY LIMITED [2019] NZHC 1037

YAN v MAINZEAL PROPERTY AND CONSTRUCTION LIMITED (IN RECEIVERSHIP AND IN LIQUIDATION) CA105/2014 [2014] NZCA 190

CULLEN V OTAHUHU ROVERS RUGBY LEAGUE FOOTBALL CLUB INCORPORATED HC AK CIV-2011-404-005266

SINGH V PAPATOETOE WELDERS & ENGINEERING LIMITED HC AK CIV 2009-404-6936

PEILUA AND FAITALA V AMITUANAI AND ANOR HC AK CIV 2006-404-2441