Victory for common sense.
The Supreme Court has today reversed a lower court's ruling on liquidators' abilities to claw back money, in a decision hailed by the construction industry as a "victory for common sense."
The highest court in the land has...
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Victory for common sense.
The Supreme Court has today reversed a lower court's ruling on liquidators' abilities to claw back money, in a decision hailed by the construction industry as a "victory for common sense."
The highest court in the land has ruled that three companies, Allied Concrete, Fences & Kerbs, and Hiway Stablilizers New Zealand do not each have to return tens of thousands of dollars to liquidators, who wanted to set these transactions aside.
These companies had all done construction or landscaping work for firms now in liquidation.
A controversial part of insolvency is the ability of a liquidator to "claw back" money from individuals or companies who were paid up to 2 years' prior to their appointment.
Known as a voidable transaction, the payment can only be recovered if the company in liquidation was insolvent at the time someone was paid.
However, a Court of Appeal decision concerning voidable transactions from 2013 caused many people concern, particu
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