In Madsen-Ries and Vance v Petera the High Court found that the directors of Petranz Limited (in liquidation) had breached certain directors' duties under the Companies Act and, as a consequence, were liable to pay compensation to the Company.  In particular, the directors failed to keep proper financial records and produce financial statements.

The Court also found that the shareholders of the company (who were also the directors) had used a significant amount of the company's funds for their own purposes.  The Court characterised the funds as "debts owed by the shareholders to the company, and are repayable on demand" and found that the company was entitled to recover those payments.

See Court decision here.