An interim liquidator was appointed to take control of accounting
practice Kuan Yap & Associates Ltd after owners fell out paralysing their
business. Company law operates to deal
with internal disputes within professional services firms trading as limited
liability companies.
David Han
and Kuan Yap jointly own the Auckland accountancy business. Both are directors. The High Court was told the business is
failing after a deadlock over business operations. Mr Yap alleges Mr Han cut off funding and is
taking no active part in generating fees for the business. Mr Han alleges Mr Yap shut him out of the
business by unilaterally engaging employees, removing his access to Xero
clients, disconnecting the business’ website and misappropriating company
funds. Staff morale has plummeted. The High Court appointed Grant Reynolds as
interim liquidator. He is authorised to
take control of all company assets pending resolution of the owners dispute.
Han v. Kuan Yap & Associates Ltd – High Court (22.02.18)
18.042