The director liquidated, discontinued, then tried judicial review. The Court had seen enough
A director who liquidated his company amid a grievance claim has lost his bid to reopen a compliance order, Judge J C Holden ruled on 22 July 2026.
The case, heard on the papers in the Employment Court at Auckland, traces back to a former employee of a security company who filed a personal grievance in June 2022. The company's sole director had incorporated the business in May 2020, telling the Court he wanted limited liability, and later said he made mistakes and the company failed.
In September 2022, on his advocate's advice, the director put the company into liquidation by special resolution, finding a liquidator through an internet search. The liquidator allowed the grievance to proceed, and the Authority found the former employee had been unjustifiably disadvantaged and unjustifiably dismissed, awarding remedies and costs. The company paid nothing.
The former employee then sought compliance orders against the director personally. A liquidator's report recorded that the director had taken excessive drawings from the company, which he denied. The Authority declined to make findings under the involvement-in-breach provisions of the Employment Relations Act 2000, instead ordering the director under section 137(2) to take the necessary steps to ensure the company received $32,456.56 plus interest so the former employee could be paid.
None of it was paid. What followed was nearly...
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