New Zealand Case Law: Decisions & Judgments

Topic

Director liability

Legal area

Court

31 Mar 2023

MINISTRY FOR PRIMARY INDUSTRIES v CANDO FISHING LIMITED [2023] NZHC 685

Citation

[2023] NZHC 685
Court

High Court

The Court held that, for reporting and recordkeeping purposes, the transfer of kina from the tenders to the San Nicholas constituted a landing/transhipment under the Reporting Regulations and pt 10 of the Act; s 108 treatment of tenders as part of the registered vessel applies to pt 6 not to pt 10, so the tenders could be vessels for reporting purposes. Because possession passed to the LFR at that transfer the unloading dockets and purchase invoices were not false or misleading. Processing aboard the San Nicholas could constitute primary processing such that the vessel functioned as a process…
11 Aug 2020

A LABOUR INSPECTOR v SOUTHERN TAXIS LTD [2020] NZCA 337

Citation

[2020] NZCA 337
Court

Court of Appeal

Leave to appeal was granted because the question about the required level of knowledge under s 142W(1) is a question of law, involves matters of general or public importance with wide application to directors and officers, and the scope of accessory liability under s 142W had not previously been determined by the Court of Appeal; the question was certified for appeal.
10 Mar 2020

MIDLAND PROPERTIES (NZ) LTD v DAWSON [2020] NZHC 453

Citation

[2020] NZHC 453
Court

High Court

The Court was satisfied the plaintiff made reasonable efforts to serve personally and could not locate the defendant; service on the defendant's mother at 1/52 Karanga Road, Dunsandel and on the liquidators was likely to bring the proceedings to the defendant's attention; accordingly personal service was dispensed with and substituted service by leaving documents with the mother and at the liquidators' office was authorised, with service deemed three working days after those steps were completed.
1 Aug 2019

MCDONALD and AGRICOLA ENTERPRISES LTD v MINISTRY FOR PRIMARY INDUSTRIES [2019] NZHC 1844

Citation

[2019] NZHC 1844
Court

High Court

The High Court upheld the convictions: independent veterinary examinations showing 186 of 516 cows (36%) with broken tails, the distribution and nature of injuries, and expert opinion that such a high incidence could not be explained by accident allowed a permissible inference of human mishandling beyond reasonable doubt; the trial Judge did not reverse the burden of proof; the contested Canterbury torque study was not necessary to the outcome; time‑barred prior injuries were admissible for their high probative value as propensity evidence; director liability under s165 was established by his…
15 Aug 2018

ADTRACTION MARKETING LIMITED (in liquidation) v EHRENFELD [2018] NZHC 2085

Citation

[2018] NZHC 2085
Court

High Court

The defendant's prolonged inaction and his last‑minute attempt to broaden and change his defence caused the adjournment; despite the plaintiff filing an amended claim later than ideal, the defendant was aware of the amendment and the steps required and therefore was principally responsible for the loss of the fixture and must pay the costs on a 2B basis.
18 Jul 2018

TGM TRADING LIMITED (IN LIQUIDATION) & ANOR v DREVER [2018] NZHC 1788

Citation

[2018] NZHC 1788
Court

High Court

The sole director, Aaron Carl Drever, failed to keep adequate accounting records, intermingled funds and caused substantial uncertainty and impediment to the winding up; accordingly, under s 300 the Court declared him personally liable for the company's debts, inclusive of net liquidator's costs, in the sum of $489,729.34.
3 Jul 2018

HEYWARD HOLDINGS LTD (In Liquidation) v BOOTH [2018] NZHC 1339

Citation

[2018] NZHC 1339
Court

High Court

Contemporaneous accounting records and documents established that the associated party loan was Mr Booth's liability; the purported 2015 journal entry recording an assignment had no legal effect because the burden of a debt cannot be assigned and no novation (by deed or supported by consideration) was proved; Mr Booth's contrary evidence was inconsistent and implausible. Accordingly there was no defence and summary judgment is appropriate.
30 Apr 2018

MOSSMAN INDUSTRIES LIMITED & ANOR v PRAGMA DESIGNER HOMES LIMITED & ORS [2018] NZHC 852

Citation

[2018] NZHC 852
Court

High Court

The court held that on the pleadings and affidavits it was reasonably arguable the second defendant had sufficient personal involvement and proximity (attending meetings, being key contact, dealing with defects and Council) to found a duty of care; factual conflicts (notably plaintiff affidavit alleging day‑to‑day involvement) made summary judgment inappropriate and strike out unjustified, so both interlocutory applications were dismissed and costs reserved.
12 Mar 2018

SDG GROUP LIMITED (in liq) v WATSON [2018] NZHC 398

Citation

[2018] NZHC 398
Court

High Court

The court found the liquidators had not established they were entitled to summary judgment for the pre-transfer component because signing the financial statements did not prove a tripartite novation or estoppel without further evidence; however, after allowing accepted credits and accounting for disputed items, the defendant had no arguable defence to a residual sum of $12,370.05, and summary judgment was granted for that amount plus interest.
30 Jan 2018

GRANT AND KHOV AS LIQUIDATORS OF K-PACK INTERNATIONAL LTD (IN LIQUIDATION) v GIFFORD [2018] NZHC 26

Citation

[2018] NZHC 26
Court

High Court

Director breached statutory record-keeping and financial statement obligations under s 194 and the FRA; those breaches materially contributed to KPI's inability to pay debts, created substantial uncertainty as to assets and liabilities and substantially impeded the liquidation; accordingly the director is personally liable for the company's debts ($87,009.40) and ordered to contribute $45,000 toward liquidators' net fees, with interest on the debt from liquidation date to judgment and costs to plaintiffs on a 2B basis.