In New Zealand, the liquidator of an insolvent company may have the power to claw back funds received by creditors or other parties in certain circumstances. This is known as a voidable transaction, and it can occur if: The transaction occurred within the two-year period before the company entered into liquidation, and The transaction involved the transfer of property or payment of money, and The transaction gave the creditor or party an unfair advantage over other creditors of the company. If a transaction is deemed voidable, the liquidator may be able to claw back the funds received by the creditor or party. This is intended to ensure that all creditors are treated equally and that assets are distributed fairly. Some…

Under New Zealand law, a director can be held liable for trading recklessly or insolvently if they allow the company to continue trading while it is insolvent or likely to become insolvent, and their actions cause a loss to the company's creditors. The determinants for finding a director liable for trading recklessly or insolvently include: Awareness of Insolvency: A director may be held liable if they continue to trade while the company is insolvent or if they become aware or should have been aware of the company's insolvency and failed to take appropriate action to address it. Breach of Directors' Duties: Directors have a duty to act in the best interests of the company, exercise due care and diligence, and…