13 Aug 2020
MONNERY v CONVENDIUM LIMITED (IN LIQUIDATION) [2020] NZCA 345
- Citation
- (2020) 25 PRNZ 417
- Court
- Court of Appeal
Where company accounting records show an overdrawn shareholder current account and the shareholder does not provide an adequate explanation that creates a legal defence, the shareholder (or its trustees) is liable to repay the deficit on demand; absent unusual or oppressive circumstances the court will not decline summary judgment; non‑compliance with s161 does not defeat the company's direct claim to recover shareholder advances; because the defence did not challenge the pleaded quantum, summary judgment should have been entered for the full claimed sum of $560,243.43.