11 August 2016

Company: Zhou v. Lu

The High Court stepped in authorising a temporary modus operandi while owners of an Auckland fruit and vegetable store with annual turnover of $5.6 million sort out their differences.
Jun Zhou and Xiaowen Lu jointly own Song Kee Fruit & Vegetable operating out of Newmarket, Auckland.  They have fallen out.  Each accuses the other of acting in an aggressive fashion.  Police have been called twice to the business premises.  Ms Lu accuses Mr Zhou of missappropriation and financial mismanagement.  He alleges she is mismanaging the business by failing to make required payments to Inland Revenue, suppliers and staff.  Each wants to buy out the other, but no price can be agreed.  A complicating factor is that Ms Lu has New Zealand residence whilst Mr Zhao’s immigration status is tied to the business.
Mr Zhou obtained an urgent High Court order after a priority one hour hearing to set out interim rules for running their business.  Ms Lu is required to action all business invoices within 48 hours of receipt.  Neither she nor an alternate director she appointed is to interfere in day-to-day management of the shop.  All company decisions are to be made jointly by Mr Zhou and Ms Lu.  Neither can make corporate decisions alone. 
Zhou v. Lu – High Court (11.08.16)

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