ONE

The law provides a variety of processes able to be applied to a situation in which a company is unable to pay its debts other than the appointment of a liquidator of the company.

Required:

Referring to relevant sections of the Companies Act 1993 (and other legislation you think relevant), describe in general terms the different ways of responding to corporate insolvency other than liquidation and when those processes might be appropriate.

 

 

TWO

a) Discuss the case of Trevor Ivory Ltd v Anderson [1991] 2 NZLR 517 and explain whether it is consistent with general principles of the tort liability of companies.

b) The managing director of Marduk Industries Ltd retained certain cash sales and did not disclose them on the tax returns of Marduk Industries Ltd filed with the Commissioner of Inland Revenue.

Required:

Explain whether Marduk Industries Ltd could be criminally convicted of 'wilfully or negligently making false tax returns' giving legal reasons. In your answer you should refer to any relevant statutory provision (or Referring to relevant sections of the Companies Act 1993) and case law of which you are aware.