In that case, the Court of Appeal dismissed the director's appeal against the factual finding by the High Court that the director had taken illegitimate business risks in conducting the business of South Pacific Shipping Limited.
The Court of Appeal concluded that the company's circumstances, considered objectively, warranted the shutting down of business, and not the taking of further extensive risks.
Control Data Corporation (CDC) was a supercomputer firm.
CDC was one of the nine major United States computer companies through most of the 1960s; the others were IBM, Burroughs Corporation, DEC, NCR, General Electric, Honeywell, RCA, and UNIVAC.
No committed financing facilities were in place which put pressure on the HWE Group’s cash resources.
In addition to this, poor internal planning, reporting and control procedures along with a lack of integration of the newly acquired businesses resulted in Administrators being appointed over the HWE Group on 1 February 2005.
However, the recent cases draw a distinction between legitimate and illegitimate risks in business, and confirm that only the taking of illegitimate business risks warrants a finding of reckless trading.
There are some peripheral points to note: The Court of Appeal case referred to is Lwer v Traveller & Another (2005) 9NZCLC 263,889.
As Administrators we realised 8.5 million in assets within four months of our appointment and preserved 1,500 jobs saving approximately million of redundancy payments.
We implemented a business improvement programme which saw an improvement of the mining services operations profitability and the stabilisation of the overall business operations.
We compete against global technology vendors such as Intel Corporation and Samsung Electronics Co., Ltd.