Supercool Refrigeration and Air Conditioning (in Receivership and Liquidation) v Hoverd Industries Ltd - [1994] 3 NZLR 300

Company law — Shares — Redeemable preference shares — Whether contract giving shareholder security for redemption over company's assets illegal — Companies Act 1955, s 66.

Company law — Debentures — Book debts — Whether fixed or floating charge — Whether set-off available against receiver.

Equity — Set-off — Receivership/liquidation — Receiver/liquidator claiming amount owing for stock on consignment — Company owing defendant sums for goods previously supplied — Whether defendant entitled to set off sums so owed.

Equity — Set-off — Redeemable preference shares — Failure to redeem — Company going into liquidation — Defendant owing moneys to company for goods sold on consignment — Liquidator's claim for amount owing — Whether defendant entitled to set off amount owing on redemption of preference shares — Companies Act 1955, s 66.

Contract — Illegal contract — Whether contract giving holder of redeemable preference shares security over company assets for redemption illegal — Whether relief should be granted — Companies Act 1955, s 66 - Illegal Contracts Act 1970, ss 6 and 7.