Insolvency events have become common place in the construction industry in recent years. In particular, a focus has been investigating whether directors allowed their insolvent company to engage in reckless trading. Sean’s paper considers the two approaches to interpreting reckless trading in the recent Cooper and Mainzeal decisions. This paper critiques the approach in Mainzeal and outlines why the traditional reckless trading approach is desirable.
Sean is the second place winner of The New Zealand Society of Construction Law Essay Prize 2020. To read Sean’s essay please click here.