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Liquidation – Voluntary winding up. The Companies Court held that the respondent directors had known, or ought to have concluded, that there was no reasonable prospect that their company would avoid going into insolvent liquidation and had breached their duties. The directors had failed to establish that they had taken every step to minimise the potential loss. Accordingly, they were liable to contribute to the company's assets.
Liquidation – Voluntary winding up. The Companies Court held that the respondent directors had known, or ought to have concluded, that there was no reasonable prospect that their company would avoid going into insolvent liquidation and had breached their duties. The directors had failed to establish that they had taken every step to minimise the potential loss. Accordingly, they were liable to contribute to the company's assets.
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