As from 1 November 2009 the process for filing a civil claim in the District Court has been radically altered.  The focus of the new procedures is on judicial settlement conferences, rather than hearings in recognition of the fact that the vast majority of civil cases are settled.  A claim is commenced by filing and serving a standard form, "notice of claim".  A defendant who intends to defend a proceeding is required to serve a "notice of response" if the claim is to be defended.  The parties then serve "information capsules" on each other, which set out the documents that they intend to rely on together with summaries of what their witnesses will say.  There is no obligation to discover documents that may assist another party to the proceeding although it is possible to seek discovery of particular documents from another party at a later stage.  If the plaintiff intends ...
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The Companies Act 1993 imposes a duty on directors not to allow "the business of the company to be carried on in a manner likely to create a substantial risk of serious loss to the company's creditors."  This is commonly known as "reckless trading" and a breach of this duty can expose directors to the risk of personal liability if the company ultimately fails.  Directors are also under a duty to ensure that proper accounting records are kept and failure to keep proper records can also result in a liquidator seeking orders from the High Court for directors to contribute to the debts of the company. 

It is therefore vital that directors take an active part in the management of the company and, in particular, that they regularly monitor the financial performance of the company.  Ignorance of the company's financial position is no excuse.  The courts have emphasised that directors ...
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A “phoenix company” is a company that is known by the pre-liquidation name of the failed company or a similar name.  For example, if XY Limited was placed into liquidation then a phoenix company would include XY (2009) Limited.  A phoenix company also includes a company that uses a trading name of the failed company. 

Phoenix companies are aptly named because they rise from the ashes of failed companies.  However, many people are unaware that it is an offence under the Companies Act for a director of a failed company to be a director of a “phoenix company” within 5 years of the date of commencement of the liquidation of the failed company.  A person who is involved in the management of a “phoenix company” can also potentially be personally liable for the debts of the “phoenix company”.