The decision of the High Court of Australia in Sons of Gwalia v Margaretic (2007) 231 C.L.R. 160 (“Sons of Gwalia”) needs no introduction. The high-profile and controversial decision of Australia’s highest Court altered the principle of subordination of shareholder claims to allow the claims of a shareholder in respect of losses caused by misleading and deceptive conduct of the company to rank pari passu with the claims of general unsecured creditors.
A recent court decision in the United Kingdom relating to the collapse of the Stanford business empire may have relevance to New Zealand due to the similarity between UK law and the New Zealand Insolvency (Cross-border) Act. http://www.chapmantripp.com/pages/Publication.aspx?ItemID=660#page=1