The residual powers that directors of a company in receivership have to commence a claim by that company without the receivers' consent were recently considered by the High Court.

A recent UK High Court decision on the issue of balance sheet insolvency will be of interest in New Zealand, despite the fact that the respective statutory solvency tests differ.  

The court had made orders for examination of 4 current and former directors of New Image by the liquidators of Omegatrend.

In Katavich v Meltzer & Ors, the court confirmed that pursuant to ss 284 and 321 of the Companies Act 1993 (Act), liquidators can be removed notwithstanding that their final report has been filed and the company is to be struck off the Register.

In Nylex (New Zealand) Ltd (In Rec and in Liq) v Independent Timber Merchants Co-Operative Limited Justice Heath granted summary judgment to Nylex and rejected ITM's argument that it had a defence of equitable set-off relating to unpaid loyalty scheme obligations.

A recent decision confirms that liquidators can require creditors and other persons with relevant knowledge about the affairs of the company in liquidation to provide information.

Introduction

The Federal High Court Lagos ("FHC”), delivered a ruling in Suit No.: FHC/L/CP/540/2012 RRSAT Global Communications Networks Limited v Daar Communications Plc, affirming its jurisdiction to hear a petition for the winding up of a company despite a clause in the parties’ agreement to submit disputes between the parties to a foreign court.

The facts of the case

One of the challenges currently faced with Nigeria’s standing in relation to international trade is the adequacy of the country’s insolvency laws and regulations on cross-border insolvency. Trade has taken an international dimension over the decades, a corporation in one country will have interests – goods, assets, employees and claims in other countries. During the life of a company and as it continues to trade, there is the likelihood for the company to fail such that its liabilities far exceed its assets and it goes insolvent.

[2007] NZCA 122

Decision of The Court Of Appeal of New Zealand on Sham and Alter Ego Trusts

Facts and Decision  

Case law on the new insolvent transactions regime is scarce, even though the changes were introduced three years ago. The High Court's recent decision in Blanchett v McEntee Hire Holdings Limited examines, for the first time in New Zealand, central principles in the new voidable transactions regime.