2 Jun 2017
MCKAY BUILDERS LTD (IN LIQ) v MCKAY [2017] NZHC 1202
- Citation
- [2017] NZHC 1202
- Court
- High Court
The retrospective journal entries were paper transactions without legal effect or equivalent value that artificially converted a company asset into a liability; the company was insolvent from at least 30 November 2009; related-party set-off was unavailable; the sole director breached statutory and fiduciary duties by permitting wrongful trading, incurring unpayable tax obligations, allowing the fictitious journals, and failing to keep proper records; accordingly the shareholders owe $293,129, the director must compensate the company for creditor losses of $306,548.43 and current account loss…