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Reckless trading leaves director liable for $7million
Klaus Lower, former director of Christchurch-based shipping company South Pacific Shipping, has been found liable in the High Court for reckless trading. Declared personally responsible for NZ$7million of the company's debts - the payment order is thought to be the highest of its kind in New Zealand.
Bell Gully partner Mark O'Brien, who acted for liquidators PricewaterhouseCoopers, said it showed that New Zealand courts were willing to make significant orders against errant directors. The judgement underscores the need for good governance and for particular caution when a company's solvency is in issue.
Click here for PricewaterhouseCoopers' press release on the judgement in PDF form.
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