| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 212/07 |
| Hearing date | 9 Jul 2007 |
| Determination date | 19 July 2007 |
| Member | R Arthur |
| Representation | C Rowe ; B Edwards |
| Location | Auckland |
| Parties | Belich v Rusty Pelican Ltd |
| Summary | COMPLIANCE ORDER - Applicant awarded lost wages and compensation in earlier determination - Respondent placed in receivership two weeks after investigation meeting and before determination issued - Receiver of respondent advised only some of lost wages award preferential, with rest of claim unsecured - Matter dealt with urgently on papers Applicant challenged Receiver's analysis - Declaration and compliance order sought regarding decision - Applicant claimed Companies Act 1993 (CA") provisions should not override Authority's order for lost wages - Given application arose out of employment relationship problem, Authority clearly had jurisdiction to determine claim - Essential issue whether approach taken by Receiver correct - Whether order for lost wages subject to preferential claims regime of CA - Schedule 7 cl2(bb) of CA expressly limited extent Authority and Courts could give claims for wages greater or lesser preference than other creditors - Approach correct as Schedule limited wage or salary preference claims to amounts earned in four months before receivership began - No compliance order needed - Respondent's director appeared to have misled Authority about prospect and imminence of receivership - However, actions did not affect outcome of application" |
| Result | Application declined ; No order for costs |
| Main Category | Practice & Procedure |
| Statutes | Companies Act 1993;Companies Act 1993 Schedule 7;Companies Act 1993 Schedule 7 cl2(bb);Companies Act 1993 Schedule 7 cl2(a);ERA s123(1)(b);ERA s128(3);ERA s127(2);ERA s161;ERA Schedule 2 cl1(b);Receiverships Act 1993 |
| Cases Cited | Belich v Rusty Pelican Ltd unreported, R Arthur, 29 March 2007, AA 97/07 |
| Number of Pages | 5 |
| PDF File Link: | aa 212_07.pdf [pdf 23 KB] |