The Supreme Court decision ordered that Mainzeal’s former directors contribute a total of $39.8 million, plus interest, to the company’s assets, for breaches of the Act.
Court demonstrates flexibility in relation to voluntary administration regime
January 2023
25 January 2023
The purpose of the voluntary administration regime under the Companies Act 1993 (Companies Act) is to provide insolvent (or nearly insolvent) companies with breathing room to either: (a) restructure/rehabilitate the company to allow it to continue trading; or (b) to re-organise the affairs of the company in a way which maximises the return to creditors and shareholders on a slightly delayed liquidation of the company.
When it comes to the 'best interests' of a company, one view assumes that maximising shareholders' return should be the paramount factor in directors' decision making.
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