New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Transactions at undervalue (s297)

Legal area

Court

3 Feb 2015

Bay Kiwifruit Contractors Limited (in liquidation) v Ladher [2015] NZHC 63

Citation

[2015] NZHC 63
Court

High Court

On the unchallenged liquidators' evidence the shareholders' current account was overdrawn and recoverable as a debt of $115,978; directors paid themselves remuneration while the company was insolvent in breach of s161 and are personally liable for specified salary amounts; directors breached ss131,135 and 136 by continuing to trade while insolvent and incurring tax obligations, justifying repayment and compensation orders under s301.
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…