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…