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Mixed reaction from Dominion finance investors.

Media Statement
11.09.08

EUFA

(Exposing Unacceptable Financial Activities Inc Soc)


www.eufa.co.nz


Dominion Finance Ltd  receivership has received mixed reaction from Dominion finance investors.

Mr Brad Hugo young investor from Christchurch who has been outspoken about Dominion Finance said this morning "I am rather surprised that Mr Terry Butler a Director of Dominion is leading a charge to overturn the receivership.  Mr Butler would not answer his door to me when I flew to Auckland in a bid to get my money back.  On that trip I also met the trustee and as a result of that meeting I tend to have more faith in the Trustee than I do the Board of Dominion.

 

The Board of Dominion and other Companies always insist the investors follow the appropriate process, yet most of them failed to do so themsleves and use this fob off enabling them to  ignore their  'true' responsibilities.

The groundswell from investors communicating with EUFA executive are now seriously pointing the finger at Directors, Trustees and Auditors,  which will undoubtedly  break down the old boys club, as individuals protect themselves from taking responsibility.  Trustees are in the firing line of investors and unless they act properly and responsibly they will be targeted by the groups of investors who seek a just outcome. Trustees can not breach their duty of care as they will be challenged.

Dominion Finance has been promoted as a victim to the financial climate but their model was doomed to fail with the rest. Finance companies, because of their often arrogant and irreponsible management have created their own demise.  No investor would have suspected such  mismanagement was takng place so broardly across the finace company sector.

Claims that withdrawals by investors has caused the problems in the Finance Company  crisis is most likely just propaganda  as it appears most investors across the board who tried to withdraw their funds were unable to, but rather substantial dividends were paid out filling the pockets of directors and shareholders -  receiverships bursts these bubbles.

Finance Company letters being sent to investors are a blame game with no responsibility and are carefully worded to coerce the investors in the same way their promotional material did.  The confusion being spread is simply added stress with no guarantees.

Coordinator of EUFA Suzanne Edmonds said from Tauranga today “While receiverships can be very frightening for investors - the positive side is the receivers can hold to account those who may have acted wrongfully.  They have powers to claw back funds that have been taken unlawfully and a receiver can bring a business back from the doldrums to a recovery position”

EUFA challenge the receivers of Dominion to think outside the square and to be innovative, rather than just using the preverbal rubber stamp”

Mrs Edmonds adds “The cost of receivership is the biggest concern to investors - however it maybe better than the cost of having the fox minding the henhouse”

END

 

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