Recouping Liquidation Costs Through Litigation Against Directors—A Dubious Practice

This short article addresses recent attempts by liquidators to incorporate the costs of running the liquidation into proceedings against directors for breaches of directors' duties. Taking New Zealand's companies (corporations) legislation as its starting point, it considers recent New Zealand and English authorities, and argues that it is generally not appropriate for courts to include post-liquidation costs as part of the short-form damages remedy traditionally provided for in Commonwealth companies statutes