Vinyl Processors (New Zealand) Ltd v Cant - [1991] 2 NZLR 416

Company law — Winding up — Personal liability of directors for debts of company — Relief — Company continued to trade when it was in financial difficulties and its position worsened leading to liquidation — Whether directors honestly believed on reasonable grounds that company could pay all its debts — Whether test of reasonableness was objective — Whether directors were personally liable for losses incurred by company — Whether distinction should be drawn between non-executive and working directors — Whether finding that directors did not believe on reasonable grounds that company could pay all its debts precluded relief under s 468 of the Companies Act — Companies Act 1955, ss 320 and 468