Recouping Liquidation Costs Through Litigation Against Directors—A Dubious Practice
Company and Securities Law Bulletin 1 (2018)
5 Pages Posted: 7 Jun 2018
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: Suggested Citation