Written by Shane
Created: 04 October 2012
In liquidations, there is an opportunity to pursue action against either the director(s) or some related party for funds or assets removed from the company prior to the liquidation.
If an unsecured creditor funds the costs of legal action, the creditor stands ahead of all creditors, including GSA holder, staff and the IRD. Any money that comes from a successful action funded by a funding creditor will be paid to the funding creditor, up to the value of the unsecured debt.
DISCLAIMER: This is not legal advice. We strongly recommend that you take independent legal advice in the first instance.