Debut Homes Ltd (in liquidation) v Cooper
This Judgment sets out the scheme of the Companies Act 1993 and the underlying principles for assessing whether a director has breached their duties under ss 131 (duty to act in the best interests of the company), 135 (reckless trading), 136 (duty not to incur obligations without reasonable grounds to believe the company can meet them when they fall due) and the correct approach to determining the compensation to be ordered under s 301. The Appeal was allowed.
Case
Vivien Judith Madsen-Reis and Henry David Levin as Liquidators of Debut Homes Limited (in Liquidation) and Debut Homes Limited (in Liquidation) v Leonard Wayne Cooper and Leonard Wayne Cooper and Tracey Cooper as Trustees of the L & T Cooper Family Trust [2020] NZSC 100
Ss 131, 135, 136, 301 Companies Act 1993