In Erwood v Official Assignee [2015] NZCA 478 an application was made to review a decision declining to dispense with security for costs.  The applicant, Mr Erwood, argued that he had demonstrated impecuniosity, and that the Registrar had erred in finding to the contrary.

Mr Erwood held nearly $800,000 on deposit with a bank. His account had been frozen by the bank on the basis that Mr Erwood lacked the capacity to give the bank authority for the account.  The bank had formed this view on information provided to them by Mr Erwood.

On 25 July 2013 the Court of Appeal issued its final judgment in Farrell v Fences & Kerbs Limited [2013] NZCA 329. The final judgment related to three conjoined appeals in which an interim judgment had been delivered on 27 March 2013 (Farrell v Fences & Kerbs Limited [2013] 3 NZLR 82). The interim judgment held that to rely on the defence to setting aside a voidable transaction in section 296(3)(c) of the Companies Act 1993 "new value" was required to be given at the time the payment that is sought to be set aside was made.

In the Court of Appeal decision of Herbert v New Zealand Guardian Trust Company Limited, the Court declined to grant Mrs Herbert's appeal in relation to the High Court's refusal to approve her creditor's proposal (see the summary in our October 2011 update).

In Perpetual Trustee Company Limited v Downey & Black, the High Court discussed the effect of the liquidation process on a choice of forum clause in a commercial contract.  It found that as the subject company, HIH, had been placed into liquidation, the choice of forum clause between HIH and Perpetual (which designated the New South Wales Courts as the forum for resolution of disputes) did not automatically operate.  Instead, the question became whether the New Zealand or NSW courts were the more appropriate venue.

Mr Petricevic is the former director of Bridgecorp and currently faces criminal charges of fraud that carry with them the possibility of a maximum of 49 years in prison.

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.

The real lesson from Debut Homes – don't stiff the tax (wo)man

The Supreme Court has overturned the 2019 Court of Appeal decision Cooper v Debut Homes Limited (in liquidation) [2019] NZCA 39 and restored the orders made by the earlier High Court decision, reminding directors that the broad duties under the Companies Act require consideration of the interests of all creditors, and not just a select group. This is the first time New Zealand’s highest court has considered sections 131, 135 and 136 of the Companies Act, making this a significant decision.

The English Court of Appeal in Re Debenhams Retail Ltd [2020] EWCA Civ 600 recently considered the inter-relationship between the UK Government’s Coronavirus Job Retention Scheme and the ‘adoption’ of employment contacts by administrators under the Insolvency Act 1986.  The issue was whether by paying only the amounts which may be claimed under the Scheme to furloughed employees, the administrators have adopted the contracts.  Adoption means that the wages and other entitlements are payable as expenses of the administration ahead of other expenses.  

On 10 October 2019 the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, announced an upcoming inquiry into insolvency practices. The inquiry was announced in light of rising concerns as to the efficacy of the voluntary administration process for SMEs and family-owned businesses, and concerns with the conduct of insolvency practitioners more generally.