Vol 16 (2019) - Issue 1

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Looking into Directors’ Private Affairs: New Zealand Court of Appeal Rejects Australian Approach

Synopsis

In its recent decision in Finnigan v Ellis1 the New Zealand Court of Appeal considered whether the Court had jurisdiction to order a former director of an insolvent company to provide personal financial information to a liquidator. This information was sought so that the liquidators could decide whether it was economically worthwhile to pursue a claim against the former director. The Court of Appeal recognised that the Australian Courts had taken a permissive approach pursuant to similar legislation, and that, generally it is desirable to have uniformity with Australian law in commercial matters. However, the Court was critical of the Australian approach and held that the Companies Act 1993 did not permit liquidators to inquire into the private financial information of a former director.