New Zealand: 2012: Are you in the cross hairs for creditor claims?

Brief Counsel

Recent decisions from the courts have raised the legal risk for directors and underlined the exposure to third party liability of auditors, trustees and promoters.

As a result, we can probably expect this year to have more claims made by receivers, liquidators and out-of-pocket investors against those involved in:

  • company governance and management
  • prospectus preparation, and
  • the provision of professional services.

So who is potentially in the gun, and why?

Directors

The risk profile attached to being a director was re-shaped in 2011 and made a lot more challenging, particularly for the directors of finance companies. Three factors were at work. They were (with links to the relevant Chapman Tripp commentary):

Authors
 
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