In enforcement proceedings, on the question of payment in one go or by instalment:
If there is evidence that directors have taken company money out and paid themselves, as opposed to paying the company's judgement debts, what is the best approach to take?
What should a plantiff present to satisfy a registrar to overturn an instalment order?
Thank you for the question.
Evidence of the company’s financial position being in a better position than when the instalment order was made is required.
The following is an extract from the By Lawyers Enforcement (NSW) commentary:
Rule 37.6 permits variation or rescission of an instalment order on the application of a judgment creditor. This is to be by notice of motion supported by an affidavit which shows any improvement in the judgment debtor's financial position.
Evidence that directors have paid themselves may not necessarily support such an order. For example, the payment may be company wages, which is a legitimate liability when calculating the company’s financial position.
Regards
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