Henderson

[2018] NZHC 1116

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2010-409-000559 [2018] NZHC 1116

UNDER

the Insolvency Act 2006

IN THE MATTER

of an application by DAVID IAN HENDERSON to trade as a sole trader

DAVID IAN HENDERSON

Applicant

Hearing:

20 April 2018

Appearances:

D M Lester for Applicant

T Cooley, counsel appointed

Judgment:

18 May 2018

JUDGMENT OF ASSOCIATE JUDGE OSBORNE

on application under s 299 Insolvency Act 2006

Introduction

[1]    David Ian Henderson was adjudicated bankrupt on 29 November 2010. He was not automatically discharged from bankruptcy in the usual way because the Official Assignee objected. Following a public examination, Mr Henderson was discharged from bankruptcy on 27 January 2017.

[2]    The Court, on discharging Mr Henderson from bankruptcy, placed comprehensive business restrictions upon him, under s 299 Insolvency Act 2006 (the Act) for a period of six years (“the prohibition”).1

1      Havenleigh Global Services Ltd v Henderson [2016] NZHC 2969 [“the discharge judgment”].

Re HENDERSON [2018] NZHC 1116 [18 May 2018]

[3]    In 2017, Mr Henderson filed 18 applications for permission to be involved in the management or other activities of 12 entities which would otherwise have been precluded under the prohibition. On 16 March 2017, the Court gave judgment on those applications (“the refusal of permission judgment”).2 The Court was not satisfied, on the limited evidence filed that the public and community interests would be safeguarded if permission was granted. The Court also found that the evidence in support of Mr Henderson’s intended roles, responsibilities and duties was insufficiently defined to make the grant of permission appropriate.3 The Court adjourned the 18 applications with leave to Mr Henderson to have them brought on if a suitably amended form of application and supplementary evidence were filed. Mr Henderson did not amend his applications. They were subsequently dismissed.

This application

[4]    Mr Henderson now applies for permission to trade as a sole trader, project manager and consultant in the construction, land development and hospitality industries. In his application, he offered to accept a number of conditions to attach to such permission. Mr Lester, for Mr Henderson, recognised in the course of his submissions that further or amended conditions may also be appropriate.

Conditions proposed

[5]    Mr Henderson, in his application, sought permission to trade on nine conditions being:

1.That the applicant’s written contract of service with his clients make it express that his role is limited to advice, consultation and negotiation on behalf of his clients and that he is unable to enter contracts with third parties as agent on behalf of his clients.

2.That the applicant not have signing authority on the bank account of his business.

3.That all creditors of the business be kept within agreed trading terms.

4.That all obligations to the IRD, both as to payments and returns, in relation to the business were to be completed within statutory time limits.

2      Re Henderson [2017] NZHC 474, [“the refusal of permission judgment”].

3      Refusal of permission…