The High Court has found that a company director was in breach of his obligations to the company when he attempted to divert business to a new company he was establishing and also attempted to steal employees away to the new business by giving false information to the employees that the original company was closing down. 

As well as the director, registered on the Companies Office register as the director, the Court also held that other investors were de facto directors of the company. They were also in breach of their obligations as directors by attempting to divert business to the new company they were setting up.

The three directors were held to have conspired to appropriate staff, clients and business opportunities for their own interests.  They were each ordered to pay the original company $681,000 in damages for the loss in re-establishing the company’s business and lost opportunities.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.


If you are a New Zealand Super Gold Card Holder (Australian Senior Cards do not qualify) we will give you a 75% discount off our initial 1 hour consultation fee. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5 % off any subsequent matters for you.  These discounts relate to your personal matters only (i.e. not business or organisational matters).