The Supreme Court today granted leave to appeal in the Jennings
case. The Supreme Court will review whether the Court of Appeal was correct to
find that the Commissioner of Inland Revenue has a trust over a company's bank
account, giving it a super-priority over other preferential creditors and
secured creditors when the company goes into liquidation.
In our view, there are good grounds for the Supreme Court to adopt a more
limited interpretation of the legislation than that adopted by the Court of
Appeal. To read our article in this month's New Zealand Law Journal explaining
why a more limited approach should be adopted, click here.
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.