New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Phoenix company liability

Legal area

Court

10 Mar 2020

COMMISSIONER OF INLAND REVENUE v CLOONEY RESTAURANT LIMITED [2020] NZHC 451

Citation

[2020] NZHC 451
Court

High Court

The 25 September 2014 transfer was a disposition intended to prejudice creditors and must be remedied by compensation; Clooney Restaurant Ltd must pay reasonable compensation equal to the vendor companies' preferential tax claim ($383,958.40) and Mr Stewart breached his director duties and must contribute that sum to the Commissioner; Mr Stewart is personally liable under s 386C for the successor company's tax liabilities evidenced at $201,256.53 as at 27 February 2020; the s 136 claim is adjourned pending higher authority.
1 Mar 2013

COMMISSIONER OF INLAND REVENUE V WRIGHT HC AK CIV-2012-404-5449

Citation

openlaw-62411122_f267_403a_8171_2639fe9d8dc1.pdf
Court

High Court

The defendant may properly raise insolvency set-off under s 310 of the Companies Act against the Crown in defence to a s 386C claim because secondary liability cannot exceed the company's net indebtedness; accordingly there is a 'common thread' between the Commissioner's claim against Mr Wright and Wire By Design Ltd's compensation claim against the Crown, and the court must coordinate proceedings (via case management) with the Crown to avoid duplication and inconsistent findings; a stay was not ordered at this stage but a telephone case management conference including the Crown was directed.