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) of this Act.

  (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) of this Act.

  (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).