5 Sept 2011
MANAGH V MORRISON HC NAP CIV-2009-441-000522
- Citation
- openlaw-6d199da1_beac_4d42_a944_701cc4e878f4.pdf
- Court
- High Court
The assignment was entered into while Dandelion was insolvent and on the evidence the assignment enabled the Family Trust to obtain a recovery it would be likely to receive more from the litigation than it would in liquidation; therefore the assignment is a voidable transaction under s 292(2) Companies Act 1993 and is set aside. The trustees' s 284(1) application for leave was dismissed because they lacked a reasonably arguable case that their actions protected or preserved the asset such as to merit priority under Schedule 7 and parallel proceedings had not protected the asset for creditors.