20 Feb 2015
MADSEN-RIES & ANOR v TWINE & ANOR [2015] NZHC 227
- Citation
- [2015] NZHC 227
- Court
- High Court
The defendants, as directors, unjustifiably continued trading after it was clear the company was insolvent (notably after January 2008), causing direct and foreseeable losses to creditors; accordingly under s 301 the directors must contribute to the company's assets an amount equal to the unpaid debts incurred as a result of that trading, but the liquidators' general costs of the liquidation are not ordered to be paid by the directors absent evidence that those costs were avoidable or causally attributable to the directors' specific breaches.