18 Sept 2013
Rowmata Holdings Limited (in liquidation) & Ors v Hildred & Ors [2013] NZHC 2435
- Citation
- [2013] NZHC 2435
- Court
- High Court
The Court held the Rowmata No.1 and No.2 trusts were the intended purchasers and that third trustee G S Cole ratified the trusts' purchase by signing the novation, RHL's payments of $720,000 bound the company and could not be reclaimed, the directors (the Hildreds) breached ss131,135,136 and 137 by causing RHL to incur obligations without reasonable grounds and by acting without requisite care creating substantial risk to creditors, and accordingly reparations and recoveries were ordered: trustees liable to repay $720,000 (and restitution) and the directors held 70% personally liable under s3…