19 May 2010
HLH EQUITY TRADING LIMITED AND ORS V LESLIE RAYMOND WHITE AND ORS HC TAU CIV-2009-470-40
- Citation
- openlaw-8c501ccd_448f_45a7_a994_474b7480760d.pdf
- Court
- High Court
The investments were securities offered to the public and, absent a registered prospectus, the allotments were void under s37(4); directors of the issuer are liable under s37(6) where subscriptions cannot be repaid; Ms Arabella was a director of Progressive Concepts Limited and liable for Henderson and Timaru investments and failed to discharge the onus under the proviso to s37(6) (no negligence), but she was not a de facto director of Gisborne Sunrise Apartment Trustee Limited and so not liable for Gisborne investors.