Defending Directors in corporate collapses
Represented by Murray Tingey
Outcome: Murray has successfully acted for directors of a large number of companies which have gone into liquidation and/or receivership to avoid claims being brought against them by receivers and liquidators. He has avoided proceedings being issued on many occasions and allowed directors to get on with their lives and other business.
Case Summary
Given the recent high-profile cases where directors have been found liable, liquidators and receivers often look to the directors to recover some of the losses in those companies. In those cases, a claim is often made in a demand from lawyers and proceedings are issued if it is not resolved.
Murray’s approach is to engage early with the liquidators and receivers and get a good understanding of their objectives. Murray has successfully negotiated with liquidators and receivers to avoid claims being issued. In other cases, he has acted for directors in defending claims in court and ensured that any claim is covered by any directors and officers liability insurance that may be held by the company.
Legal Challenges
Directors are often left in an invidious position when companies fail. There is a natural assumption by many creditors that their losses are the directors’ responsibility and they should pay. The recent case law has meant that the scope and quantum the potential of liability of directors has increased. This area of law is complex and Murray has a thorough understanding from preparing his LLB Honours dissertation on directors duties, acting both for and against directors in the largest corporate collapses in New Zealand Including Bridgecorp, Nathans Finance, Strategic Finance, CBL, and keeping up to date on the latest case law.
Strategic Approach
Murray Tingey has a strong relationship with most liquidators and receivers appointed in New Zealand. He has a thorough understanding of what their likely approach and desired outcomes will be. He can utilise those to the benefit of his client directors. He has a deep understanding of directors duties having acted in many cases both for and against directors, He can quickly analyse the issues and determine what is the best path likely to relieve the directors from any liability and ensure that there is no litigation.
Case Highlights
Murray has recently acted for directors in the construction industry where there have been large losses stemming into tens and hundreds of millions of dollars. Murray’s clients have successfully avoided many claims, but naturally do not wish to be named and accordingly Murray cannot list the companies or directors involved.
Results and Impact
Facing a claim as a director of a company is a very stressful situation. Murray is committed to obtaining quick results to resolve the issue and minimise any risk of her proceedings or substantial payment by the directors.
ENDORSEMENT
We wholeheartedly endorse Murray for his expertise as a barrister specializing in company law in Aotearoa New Zealand. His proactive approach to protecting and defending company directors is extraordinary. Murray possesses an acute ability to navigate the complexities of directors' duties, ensuring that we remain compliant and safeguarded from potential legal pitfalls. His keen legal insight, combined with impressive commercial acumen, has proven invaluable to our organization.
Murray's strategic guidance has not only shielded us from wrongful harm but has also empowered us to make informed decisions that align with our business objectives. His dedication to upholding the highest standards of corporate governance is evident in every interaction, making him an indispensable ally for any company director.
In a landscape where directors compliance is crucial, having Murray on our side has been a game changer. We cannot recommend him highly enough for anyone seeking a barrister who truly understands the nuances of company law and the importance of protecting directors’ interests.
Directors who avoided claims so wish to be anonymous
Ready to Discuss Your Case?
If you need expert guidance in defending a claim or potential claim as a director, reach out to Murray Tingey for a consultation.