Hanover DO NOT want Receivership
Media Release: 4th December 2008
(Exposing Unacceptable Financial Activities Inc Soc)
The polished delivery at the final Hanover Road Show meeting today will undoubtedly have placed further fear and a possible dilemma for some inexperienced voting investors.
At today’s meeting, Hanover was attempting to rebuild trust in investors. It was evident that Hanover fear Receivership and have carefully presented pro/pro rather then pro/con presentations, lacking balance. The Trustees and PWC were notably not in attendance.
EUFA Coordinator Suzanne Edmonds said from Auckland this afternoon; “At the meeting fear was being fed to investors about Receivership. However I am sure the laws under Receivership means the dividend payments for the last 2 years with Hanover, could be pulled back. It is most probable that Receivers would be able to seek repayment of dividends or capital repayments during the prior 2 years.”
The Commence Commission investigation into Hanover was raised at question time. And Hanover confirmed the investigation has not been completed.
Hanover’s flippant attitude to the investigation today was unfortunate. It was previously reported that Hanover’s ads sponsoring TV One's weather update claimed it had "the size and strength to withstand any conditions".
The Commission said its investigation is to determine if Hanover Finance had breached the Fair Trading Act by making misleading representations to prospective investors and/or the public generally.
Hanover’s polished promotional material and advertising campaigns were crucial to its success in reaching trusting investors.
In a letter to an investor, signed by David Bryan, GM of Hanover, which accompanied a gift, Mr Bryan states the following. “We trust you will be able to put your Hanover Garden Tool set to good use. While you are attending to your garden, you can be confident that we will be looking after your investment.”
In continuing to build the investors trust, two weeks following the gift of the tool set, a box of Dahlia bulbs arrived thanking the investor for her investment.
The vote for Moratorium or Receivership is next Tuesday 9 December 2008. However Mr Hotchin did state today towards the end of the meeting that if voters did not want either Moratorium or Receivership they would return to the Trustees to look at a third proposal.