New Zealand Legislation: Acts

380 Carrying on business fraudulently

• (1) Every person who is knowingly a party to a company carrying on business with intent to defraud creditors of the company or any other person or for a fraudulent purpose commits an offence and is liable on conviction to the penalties set out in section 373(4).

  (2) Every director of a company who,—

  • (a) by false pretences or other fraud induces a person to give credit to the company; or

  • (b) with intent to defraud creditors of the company,—

    • (i) gives, transfers, or causes a charge to be given on, property of the company to any person; or

    • (ii) causes property to be given or transferred to any person; or

    • (iii) caused or was a party to execution being levied against property of the company—

  commits an offence and is liable on conviction to the penalties set out in section 373(4).

  (3) Every director of a company commits an offence and is liable on conviction to the penalties set out in section 373(4), who, with intent to defraud a creditor or creditors of the company, does any thing that causes material loss to any creditor.

  Compare: 1955 No 63 s 461D; 1980 No 43 s 47

  Section 380(3): added, on 1 November 2007, by section 33 of the Companies Amendment Act 2006 (2006 No 56).