CSUM 20/12
Issued
24 Sep 2020
Decision
24 Sep 2020
Court
NZSC
Appeal Status
Pending

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.

Tax Information Bulletin Vol 32 No 11 - December 2020

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