8 Nov 2017
CATHERINE JANE JOLLANDS AND PETER REGINALD JOLLANDS AS LIQUIDATORS OF TSL NELSON LIMITED (IN LIQUIDATION) v KELSEY GULL AND ANDREAS GULL [2017] NZHC 2733
- Citation
- [2017] NZHC 2733
- Court
- High Court
The Court found TSN and TSI must be treated as separate entities and the sale proceeds were intended to be split 50/50; after accounting for omitted debts and GST adjustments TSN was insolvent on 5 July 2012 and in December 2012; the $180,000 and subsequent payments were intended to and did partially satisfy shareholder current accounts (including via transfers to a family trust), thus constituting insolvent transactions under s292 which the liquidator could set aside under s294; accordingly the payments to the second and third respondents were set aside and repayment ordered.