Long-running legal action following the collapse of construction company Mainzeal is headed to the Supreme Court.
Mainzeal, a major construction firm, collapsed in 2013 owing creditors $110m. Photo: RNZ / 123RF
The Court of Appeal in March ruled Mainzeal's directors - former prime minister Dame Jenny Shipley, Peter Gomm and Clive Tilby, and the chief executive Richard Yan - were liable for reckless trading, but overturned the accompanying order for $36 million in penalties.
The court ruled the directors had exposed the company to a risk that did not materialise, but instead it found they had breached the Companies Act by entering into a number of long-term obligations to various parties.
It said for that breach they were liable for penalties, which was sent back to the High Court for determination.
But the directors applied to the Supreme Court to appeal, prompting the liquidators to file a cross appeal.
"Leave is intended to encompass all of the questions raised in the notices of application for leave to appeal and cross appeal and in the submissions for leave to appeal and cross appeal," the Supreme Court said in a brief statement.
Mainzeal, a major construction firm, collapsed in 2013 owing creditors $110m.