Recouping Liquidation Costs Through Litigation Against Directors—A Dubious Practice

Company and Securities Law Bulletin 1 (2018)

5 Pages Posted: 7 Jun 2018

See all articles by Peter G. Watts

Peter G. Watts

Law Faculty University of Oxford; University of Auckland, Law Faculty

Date Written: January 22, 2018

Abstract

This short article addresses recent attempts by liquidators to incorporate the costs of running the liquidation into proceedings against directors for breaches of directors' duties. Taking New Zealand's companies (corporations) legislation as its starting point, it considers recent New Zealand and English authorities, and argues that it is generally not appropriate for courts to include post-liquidation costs as part of the short-form damages remedy traditionally provided for in Commonwealth companies statutes.

Keywords: Companies, liquidations, costs claims against directors, breach of directors' duties

JEL Classification: D23, D70, D74, G30, G34, K10, K12, K22

Suggested Citation

Watts, Peter G. and Watts, Peter G., Recouping Liquidation Costs Through Litigation Against Directors—A Dubious Practice (January 22, 2018). Company and Securities Law Bulletin 1 (2018), Available at SSRN: https://ssrn.com/abstract=3183020

Peter G. Watts (Contact Author)

University of Auckland, Law Faculty ( email )

Private Bag 92019
The University of Auckland
Auckland Central, 1142
New Zealand

Law Faculty University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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