Manukau City Council v Lawson - [2001] 1 NZLR 599

Company law — Dividends — Validity of dividends — Electricity company with shareholder trustees — Whether trustees had duty to prevent company paying capital dividends — Whether arising from trustees' duty of impartiality between income and capital beneficiaries.

Trusts and trustees — Variation of trust — Dividends paid by electricity company to shareholders deemed income — Trust requiring shareholder trustees to distribute dividends to income beneficiaries — Whether Court should declare part of dividends capital — Trustee Act 1956, s 64B.

Company law — Dividends — Electricity company paying dividends from profits to shareholders — Company selling electricity supply part of business — Sale including losses on electricity supply contracts — Dividends overdrawing company's retained earnings account — Whether dividends capital or income.