Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Court rejects Lombard appeals; sentences inadequate

News release
30 May 2013
Court of Appeal rejects Lombard directors’ appeals against conviction; sentences found to be inadequate

The Financial Markets Authority says the decision by the Court of Appeal in the Lombard Finance case further clarifies directors’ duties and will help restore investor confidence.

The Court has today rejected an appeal against conviction by Sir Douglas Graham, Michael Reeves, Lawrence Bryant and William Jeffries, and accepted FMA’s appeal that the original sentences were inadequate. A decision on sentence will be made once the Court has received reports on the suitability of home detention.

The directors were found guilty of making untrue statements in a registered prospectus and were sentenced to periods of community service. Sir Douglas Graham and William Jeffries were also each ordered to pay $100,000 as reparation.

FMA Head of Enforcement, Belinda Moffat, said today’s decision reinforced the statutory obligation of directors to ensure that the statements made in the offer documents are true.

“The Court has clarified that the duties on directors under the Securities Act to ensure that offer documents are true overrides the duty that they owe to the company to act in its best interests, if they conflict,” said Ms Moffat.

“The Court has reconfirmed that the purpose of the Securities Act is to protect the investing public through timely disclosure of material information,” she said.

Lombard Finance & Investments was placed in receivership in 2008, owing $111 million to approximately 3600 investors.

A copy of the Court of Appeal decision can be found here.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news