9 Mar 2016
BARRING HORTICULTURE NEW ZEALAND LTD (IN LIQ) v BARRING & ANOR [2016] NZHC 304 [9 March 2016]
- Citation
- [2016] NZCCLR 17
- Court
- High Court
Where a director caused or permitted a company to make advances while insolvent, those advances are recoverable as debts where they are unsupported by contractual terms or company authorisation; a related company is likewise liable for advances received without consideration or terms; where breaches of ss 131, 135 and 136 caused creditor loss, the director is liable to compensate the company/creditors and compensation equal to creditor losses may be awarded after assessing causation, culpability and duration.