26 Feb 2019
MAINZEAL PROPERTY AND CONSTRUCTION LTD (IN LIQ) v YAN AND OTHERS [2019] NZHC 255 [26 February 2019]
- Citation
- [2019] NZHC 255
- Court
- High Court
The Court held the directors breached s135: Mainzeal was trading while balance‑sheet insolvent because intercompany receivables were not genuinely recoverable; directors unreasonably relied on conditional, non‑binding and legally ineffective assurances of group support (complicated by Chinese foreign exchange controls); Mainzeal's trading was vulnerable to one‑off losses. Under s301 the Court ordered a just contribution of NZD 36,000,000 (one‑third of liquidation deficiency) with Apportionment: Yan severally liable for NZD 36,000,000; Shipley, Tilby and Gomm each jointly liable with Yan for N…