10 Sept 2009
PEACE AND GLORY SOCIETY LIMITED (IN LIQUIDATION) AND ANOR V STEFANO SAMSA CA CA39/2009
- Citation
- openlaw-1c1de1b0_3f88_474d_a6b0_a7ae9e43db3b.pdf
- Court
- Court of Appeal
The Court accepted the factual elements constituted a breach of s136 but, applying the s301 discretionary inquiry, concluded no contribution was just: the director acted honestly in constrained circumstances, purchased the asset at fair value, sought to compromise the GST debt, the company's insolvency (not record‑keeping) was the real cause of loss, and equitable compensation under s301 should be limited to actual loss — accordingly the appeal dismissing the liquidators' claim was upheld and no costs ordered despite the breach.