New Zealand Case Law: Decisions & Judgments

Topic

S 131 companies act 1993

Legal area

Court

3 Jun 2021

ARNERICH v DHC ASSETS LTD [2021] NZCA 225

Citation

[2021] NZCA 225
Court

Court of Appeal

Director breached s 131 by causing the trustee company to distribute trust proceeds to beneficiaries while failing to have regard to Vaco's interests as trustee and contingent creditor claims; where breach caused loss to creditor, court may order compensation under s 301 and must determine the company's liability to the creditor to assess appropriate relief; interest award to be adjusted to exclude contractual penalty interest on components not attracting contractual interest.
26 Oct 2018

ADTRACTION MARKETING LTD (IN LIQ) v EHRENFELD [2018] NZHC 2777

Citation

[2018] NZHC 2777
Court

High Court

The defendant authorised the payments; only limited administrative and financial services were provided and no licensing services were supplied; Reeltime failed to inject agreed capital; by December 2013 Adtraction could not meet key trade creditors (notably Yellow) and a reasonable director would not have authorised further payments for non-existent licensing fees or continued payments that preferred related companies over creditors; accordingly defendant breached s 131 and, alternatively, s 137, and is liable to repay NZD181,016.36.
24 Mar 2014

SCHULER V GRANT AND KHOV AS LIQUIDATORS OF INDEPENDENT LIVESTOCK AGENTS LIMITED (IN LIQUIDATION) CA27/2013 [2014] NZCA 91

Citation

[2014] NZCA 91
Court

Court of Appeal

Given Potter J's unchallenged findings that Schuler deliberately misrepresented to creditors and applied proceeds due to the Mudges to IL Agents' business so the funds were misapplied and no longer available at liquidation, those facts established breaches of statutory duties (s 131) and justified relief under s 301 requiring account to the liquidators for the net proceeds; the appeal lacked merit and is dismissed.

New Zealand Case Law

ARNERICH v DHC ASSETS LTD [2021] NZCA 225

ADTRACTION MARKETING LTD (IN LIQ) v EHRENFELD [2018] NZHC 2777

SCHULER V GRANT AND KHOV AS LIQUIDATORS OF INDEPENDENT LIVESTOCK AGENTS LIMITED (IN LIQUIDATION) CA27/2013 [2014] NZCA 91