New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Director breach of duty s131
  • 4 Jun 2015

    MADSEN-RIES & ORS v CANDY [2015] NZHC 1229

    Citation
    [2015] NZHC 1229
    Court
    High Court

    The defendant, as sole director and shareholder, knowingly continued to withdraw company funds totalling $311,810.49 while the company was insolvent from at least the 2007 financial year, thereby breaching directors' duties under s131 and s135; the court entered default judgment for the overdrawn account of $311,810.49 plus interest and ordered the defendant to contribute by way of compensation $205,754.28 (the Commissioner’s proved claim and petition costs) plus interest, together with costs to the plaintiffs.

    • Solvency test
    • Overdrawn current account
    • Director breach of duty s131
    • Causing/wallowing business to be carried on s135
    • Compensation under s301
    • Default judgment