Re Burgess Homes Ltd - [1989] 1 NZLR 692

Company law — Winding up — Disposition of property at an undervalue within three years of commencement of winding up — Company A disposed of to a director its voting rights in company B as part of an elaborate deed to separate the affairs of the two companies — Within three years company A went into liquidation — Liquidators claimed that voting rights were disposed of for inadequate consideration and sought recovery from director — High Court assessed inadequacy at $70,000 - Whether Court should condemn bona fide bargain negotiated at arm's length and with no intention of defeating creditors — Whether there was overall imbalance of consideration — Whether director acted in good faith and with no intention of defeating creditors — Whether director gave inadequate consideration for voting rights — Whether any amount should be paid by director to liquidators — Companies Act 1955, s 311C.