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SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

Dave Henderson fails to stop liquidation bid

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The High Court has dismissed a bid by one of David Henderson’s companies now directed by his wife to stop liquidation proceedings.

Wellington accountant Robert Walker, the liquidator of several companies in the Henderson group, has started court action to liquidate Castlereagh Properties Ltd, of which Henderson was a shareholder until June 27, 2010.

The shares are now held by FTG Trustee Services Ltd, a company directed by Henderson’s wife Kristina Louise Buxton, but with the shareholding in Henderson’s name.

Henderson was bankrupted on November 29, 2010 and remains a bankrupt. Walker has also issued bankruptcy proceedings against Buxton.

She is the sole director of Castlereagh, which applied to the High Court at Christchurch last month to have the liquidation action stayed. Associate Judge Rob Osborne rejected the bid in a judgement this month. [Read more…]

David Ian Henderson – his latest bankruptcy and FTG Trustee Services Ltd

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Dave Henderson [David Ian Henderson], twice-bankrupt Christchurch property developer, remains a bankrupt and yet he is listed on the Companies Office website as owning 100 shares (100%) in FTG Trustee Services Ltd, a company of which he is sole director, and which currently owns 16 companies (see list below).
Is it lawful for Mr Henderson to continue to own these shares while a bankrupt? Should not the Official Assignee (OA) secure them on behalf of creditors and sell them, given that Henderson had gross personal debts of about $165m and $86m after the sale of secured assets, at the time the High Court in Christchurch imposed bankruptcy for the second time on him on 29 November 2010? (He was bankrupted in 1996 for three years). Are these shares not vested in the OA from the commencement of Henderson’s bankruptcy? If not why not?
These questions can best be answered by first examining The Insolvency Act 2006  –

[Read more…]

David Ian Henderson – Property Ventures Ltd (In Liq.) and role of Liquidator

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David Ian Henderson is a twice bankrupt Christchurch property developer whose Group of companies – Property Ventures Ltd [“PVL”]- were placed in liquidation on 27 July 2010. On 9 June 2014 Mr Henderson will be examined as a current bankrupt before the High Court to give account of his various activities while subject to the bankruptcy order (Note: It is unlawful for a current bankrupt to play any role in the management, directing or promoting of a company).

One of the tasks of a Liquidator nominated by the Commissioner of Inland Revenue and appointed by the High Court to liquidate a large Group of companies such as PVL, is to try and determine whether or not a director(s) of the Group has committed any offence(s) under the Companies Act 1993, the Insolvency Act 2006, The Securities Act,  the Tax Administration Act 1994, or the Financial Reporting Act 1993 etc., and report any breach(es) to the Registrar of Companies.

The task of unravelling the often convoluted network of company subsidiaries and related companies within such a Group can be a daunting one for any Liquidator, as illustrated in the example below – involving ongoing litigation initiated by the Liquidator against David Ian Henderson (and his companies) because he has allegedly failed for some years to provide the required documentation to him the liquidator to complete his statutory duties. Liquidators have a statutory right under s. 261 of the Companies Act 1993 to demand financial records, records of company related correspondence etc. from a company director. Failure to provide it in response to a formal request is an offence and if  convicted, the director “is liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years” under s. 373(3) of the Act.

The liquidator has reported that a proliferation of companies were used by Henderson to “thwart liquidators,” by liberally using cross-guarantees to muddle the affairs of various entities.

Property Ventures Ltd (In liquidation) – Unravelling a complex “single economic unit”  [Read more…]

David Ian Henderson: Bankrupt Christchurch property developer v. the Insolvency and Trustee Services

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Introduction

Liquidation is a process where the assets of a company that cannot pay its debts, are distributed by a liquidator or by a Crown authority called the Official Assignee (AO). The AO only deals with liquidations where it has been appointed liquidator by the court or, in certain circumstances, by itself. A company is placed into liquidation when it is unable to pay its debts. This is done voluntarily or by a court order. A liquidator is appointed to investigate the company’s financial affairs, establish the reason why the company failed, investigate possible offences, and identify and sell any assets to help repay creditors. Officers of the company must assist the liquidator by providing information and answering questions. 

Failure to assist the Official Assignee is a serious offence and may lead to prosecution. It is an offence for a director to conceal or remove property with the intention of preventing or delaying the Official Assignee from taking custody of it, or to destroy, conceal or remove records or other documents. Penalties can include fines and imprisonment.

Bankruptcies are managed by the AO and normally last for three years. Bankrupts are unable to direct a company and are not allowed to manage a business without the OA’s consent. [Source: http://www.insolvency.govt.nz/]

The Society for Promotion of Community Standards Inc. is concerned that the ability of liquidators serious about fulfilling their statutory duties to investigate and report possible offences by company officials against the Companies Act 1993, the Financial Reporting Act, the Securities Act and the Insolvency Act 2006; are being undermined and thwarted by a number factors including: [Read more…]