INDEPENDENT NEWS

Jenny Shipley starts evidence in High Court in Mainzeal case

Published: Thu 11 Oct 2018 04:45 PM
Jenny Shipley starts her evidence in High Court in Mainzeal case
By Nikki Mandow
Oct. 11 (BusinessDesk) - Former Prime Minister Jenny Shipley has taken the stand in the high-profile case against directors of failed property company Mainzeal.
Dressed in black, Shipley took the oath in the Auckland High Court, but spoke for only 10 minutes before the court broke for lunch.
Shipley led New Zealand between December 1997 and December 1999 and left Parliament in 2002. She was a director of Mainzeal from 2004 until February 2013 and chair of the company when receivers were appointed in February 2013.
Liquidators acting for creditors argue the directors were “reckless” in not pulling the plug on the company earlier.
Unsecured creditors, including many sub-contractors working on Mainzeal projects, were owed more than $115 million when the company collapsed.
Evidence from earlier in the trial suggested there were warning signs about company finances as early as 2004, and that the company was technically insolvent in 2010.
Lawyers for liquidators BDO argue directors breached their obligations somewhere between January 2011 and July 2011 - two years before they put the company into liquidation.
But Shipley and the other directors, who include former Brierley Investments boss Paul Collins and Richard Yan, head of Mainzeal owner Richina Pacific, argue there was no reckless or illegitimate trading.
As Shipley told the court this morning: “I consider the board of Mainzeal was diligent and careful, in the circumstances we faced at the time. We kept the interests of Mainzeal’s creditors, employees and customers firmly in mind at all times and endeavoured to protect their interests and avoid loss.”
Shipley will read her evidence over the next couple of days and is likely to be cross-examined on Monday.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

New GST rules to level playing field
By: New Zealand Government
PM’s Business Advisory Council membership announced
By: New Zealand Government
Report shows New Zealand air quality is good
By: Statistics New Zealand
Govt backtracks on climate action, grants drill extension
By: Greenpeace New Zealand
Recommendations for screen sector workplace relations
By: Film Industry Working Group
DOC closing tracks to protect kauri
By: New Zealand Government
Govt raises GST threshold for online shopping
By: BusinessDesk
Foreign Website Gst Confirmation Welcomed
By: Retail NZ
Trade Me supports government’s move to collect GST
By: Trade Me Limited
GST changes will help many consumers
By: New Zealand Taxpayers' Union
Small firms say dealing with Govt ‘a nightmare’
By: New Zealand National Party
Minister welcomes major ‘air’ report
By: New Zealand Government
NZ heading for gas supply gap - OMV
By: BusinessDesk
Focus on 'low-hanging fruit' for emissions reduction
By: BusinessDesk
EPA grants OMV marine discharge application
By: Environmental Protection Authority
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media