Mixed reaction to Hanover restructure plan

MEDIA RELEASE - 20 November 2008

EUFA

(Exposing Unacceptable Financial Activities Inc Soc)

www.eufa.co.nz

Initial reaction to today's restructure plan from Hanover has been mixed.

While investors want to retrieve their investment funds as soon as possible, investors ongoing concerns relate to the management of the Hanover restructure. In October, Hanover investors who are EUFA members, unanimously supported a request by EUFA executive to have representation on the Hanover board, in a moratorium proposal.

Hanover had an independent Director, Greg Muir, but as a friendly independent director the company still hit troubles including Commerce Commission Investigation. Mr Muir has gone on record constantly defending Hanover which has shown he does not hold a true and honest independent position.

Investors want a representative on a Hanover board to ensure transparency and true independence.

In an email written in mid October to BRYAN CONNOR, General Manager, Corporate Trusts - the following request was made “:EUFA members have requested and support a call on the trustees to appoint an investor representative for independence, to the board, should Hanover go into moratorium”

Mr Connor sent the following response.

“We can confirm that as part of the proposal that we are currently reviewing there is the requirement for an independent director or adviser to be part of the process. We note your request for a representative of your group to be appointed to represent investor interests. There are a number of groups advising us that they represent investor interests and we regret that it is not possible to make appointments to represent such interests.

We are working with the company and our respective advisers to get a proposal to investors as soon as possible which will include details of how the governance will work. Investors will then have the opportunity at the meeting to vote on whether or not to support such a proposal.”.

Coordinator of EUFA Suzanne Edmonds said from Tauranga this afternoon “If the trustees have had a “number of interest groups” claiming to represent investors and the Trustees can not make appointments to represent such interest, one has to wonder if moratorium will be transparent, genuine and full proof”

Mrs Edmonds added “Hanover have been giving individuals very conflicting stories since July and it would seem that inconsistencies are rife in their own camp... I note they even informed investors they knew nothing of the EUFA group albeit we wrote to them in July requesting a meeting.”

Snubbing investors who require a partnership going forward is foolhardy.

ENDs