7 Aug 2017
DAVID BROWNE CONTRACTORS LIMITED AND DAVID BROWNE MECHANICAL LIMITED v DAVID ROSS PETTERSON AS LIQUIDATOR OF POLYETHYLENE PIPE SYSTEMS LIMITED (IN LIQUIDATION) [2017] NZSC 116
- Citation
- [2017] NZSC 116
- Court
- Supreme Court
For the cashflow test in s292(2)(a) 'due debts' includes contingent or unliquidated claims that, objectively assessed from the perspective of a reasonable and prudent business person, are sufficiently certain to crystallise into legally due debts within a reasonably proximate period; the McConnell Dowell claim met that standard at the time of the repayments and, when taken into account, Polyethylene was unable to pay its due debts; recipients could not rely on s296(3) because the director's knowledge is attributable to them and they did not act in good faith; accordingly the repayments were v…