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…]
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…]
Fairfax Media have amended their on-line story on the liquidator appointed by the IRD and the twice bankrupt property developer David Ian Henderson and given appropriate prominence to the correction. The false headline "Liquidator fined for ' buffoon' comment" [emphasis added] has now been amended to "Liquidator to pay for 'buffoon' comment [Emphasis added]. Fairfax now affirms that The Disciplinary Tribunal of the New Zealand Institute of Chartered Accountants (NZICA) did NOT impose a fine on liquidator Robert Bruce Walker after ruling that he had breached professional standards (recognised by the NZICA Professional Conduct Committee (PCC) to have been at the lower end of 'offending'). Walker strongly denied the charges before the Tribunal, via his lawyer, and was required in its ruling, as Fairfax now helpfully point out - to pay "costs", and this is NOT a "fine". It is gratifying to see that some parts of the community have a sense of decency, evidenced by Fairfax Media making the online change (update) to the story promptly, correcting the error - which if had not done, could have opened it up to potential defamation. It is a shame that this prompt and principled response is not always the case among other institutions, and persons responsible for online stories. Among the latter, ethical qualities and standards are often sadly, even shockingly lacking. Certain so-called "administrators" and "owners" of scurrilous websites who maliciously propagate defamatory falsehoods, knowingly, need to 'lift their game', to put it mildly, and recognise that once a falsehood has been formally notified to them, its defamatory nature identified by a complainant, and a formal request made for its removal, it must be removed. If it is not, this opens thoseresponsible for the website to potential defamation proceedings from the complainant. Courting defamation proceedings by, for example, accusing a person on-line of being a serial tax evader, and/or of parading fake degrees on a CV etc., and/or holding directorships of fictional companies or organisations etc, without providing any evidence; is the mark of a true coward, and a moral bankrupt. [Read more...]
Professional Standards – What are they? Key players: David Ian Henderson (bankrupt Christchurch Property Developer) and his business associate Ian Bruce Hyndman and their hired licenced private investigator, Wayne Idour; Robert Bruce Walker (the appointed liquidator of Henderson’s failed companies), Hamish McNicol , Fairfax Media reporter, and the New Zealand Institute of Chartered Accountants’ Disciplinary Tribuna and Professional Conduct Committee.
A Fairfax Media report by Hamish McNicol, published at 15:25 on Thursday 17 April 2014, was headlined “Liquidator fined for buffoon comment” [Emphasis added]. It commenced:
A liquidator who referred to South Island property developer Dave Henderson as a “little b*****d” and a “buffoon” in a telephone conversation has been found guilty and ordered to pay costs of $18,165. [Emphasis added]
This Stuff News headline is not only wrong, it is defamatory. The online editor later changed the headline to
“Liquidator to pay for ‘buffoon’ comment” [Emphasis added].
Why the change and was the revised headline true or false? [Read more…]