Pascoe Ltd (In Liquidation) v DFC Overseas Investments Ltd - [1994] 3 NZLR 627

Company law — Statutory management — Application for leave to issue proceedings — Company borrowing money on "no recourse" loan — Money lent to third party — Third party going into liquidation — Company going into statutory management — Lender seeking leave to commence proceedings against company — Grounds on which leave to commence proceedings granted — Reserve Bank of New Zealand Act 1989, s 122(2).

Company law — Directors — Directors lending company's money on "no recourse" basis and without security — Sole shareholder approving loan — Borrower lending money on to third party — Third party becoming insolvent — Whether breach of fiduciary duty by Directors.

Contract — Quasi-contract — Action for money had and received — Total failure of consideration — Company lending money — Company accepting promissory note from third party in discharge of borrower's liability — Promissory note worthless as third party insolvent — Whether total failure of consideration — Whether borrower liable for money had and received.