19 May 2014
LAKESIDE VENTURES 2010 LTD (IN LIQ) v LEVIN & ORS [2014] NZHC 1048
- Citation
- [2014] NZHC 1048
- Court
- High Court
Mr Burrows, as sole director and shareholder controlling both Lakeside and its role as trustee, misappropriated funds that gave rise to immediate company tax liability, caused or allowed distributions when Lakeside was insolvent and without reasonable grounds for solvency, and the retrospective trust resolution could not defeat company recovery; accordingly distributions were recoverable under ss56 and 298 and dispositions set aside under property law, and Mr Burrows is liable under s301 to contribute the full tax debt $486,299.63 as compensation for his breaches of directors' duties.