Dunphy v Sleepyhead Manufacturing Company Ltd - [2007] 3 NZLR 602

Company law — Liquidation — Creditor’s security interest — Whether liquidators third parties for purpose of enforceability of security agreement — Personal Property Securities Act 1999, ss 36(1) and 40(1)(c).

Commercial law — Personal property securities — Security agreement with company in liquidation — Agreement not signed but financing statement registered — Whether security agreement enforceable as against liquidators — Whether creditor entitled to be paid out of surplus — Personal Property Securities Act 1999, ss 36(1), 40(1(c) and 117(1).

Tort — Conversion — Sale by liquidators of stock supplied under security agreement — Whether liquidators acting as agents of first-ranking creditor.