10 Sept 2021
DEMPSEY WOOD CIVIL LTD v GAPES [2021] NZHC 2362
- Citation
- [2021] NZHC 2362
- Court
- High Court
The director breached ss 135 and 136 of the Companies Act by permitting trading after refinancing options had failed (breach date assessed as 13 November 2015) such that new obligations to the plaintiff were incurred without reasonable grounds to believe they would be paid; the director also breached s9 of the Fair Trading Act by giving an unqualified assurance about funds for civils and consultants on 12 November 2015 which the plaintiff relied upon. The director did not breach s131. Remedy: s301 contribution assessed on a new debt basis (one third of plaintiff's post‑breach new debt) and aw…