New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

S 37 securities act

  • 28 Jul 2021

    BANKS v FARMER & ORS [2021] NZHC 1922

    Citation
    [2021] NZHC 1922
    Court
    High Court

    Court held each alleged loan/allotment must be assessed individually; none of the three agreements constituted an allotment of securities offered to the public so the Securities Act claims failed. Directors did breach ss 135 and 137 (continuing to trade beyond the point at which the Sprint deal was objectively unlikely in late April–mid May 2014), but those breaches did not cause compensable loss to the plaintiff and s 301 relief was unavailable because the company was not in liquidation at the time of judgment and s 301(1)(c) does not permit the plaintiff to be paid directly for directors' d…

  • 5 Apr 2018

    BANKS v FARMER & ORS [2018] NZHC 604

    Citation
    [2018] NZHC 604
    Court
    High Court

    The High Court upheld the Associate Judge's decision and assumed jurisdiction because there was a sufficiently plausible evidential foundation that Mr Banks was not a habitual investor for the purposes of the Securities Act and questions about the source of funds did not defeat the statutory and contractual causes of action; factual disputes and credibility issues are matters for trial after disclosure and evidence exchange; alternatively leave to serve would have been granted and the failure to obtain leave is excused, so the protest was properly set aside.