Harts Contributory Mortgages ordered to cease

31 July 2002

NEWS RELEASE

Harts Contributory Mortgages Limited ordered to cease to act as contributory mortgage broker

The Securities Commission has ordered Harts Contributory Mortgages Limited (in liquidation) to cease to act as a contributory mortgage broker and appointed Crichton Horne & Associates Mortgage Brokers Limited to act as broker in its place.

The Commission also removed the director of Harts Contributory Mortgages Nominee Company Limited and appointed David Crichton and Keiran Horne as directors.

The Dorchester Group purchased Harts late last year and appointed the director last month. The Commission considers it is appropriate to appoint a replacement broker and directors who are independent of Harts, its shareholder, its liquidator and other potentially interested parties.

Chairman Jane Diplock said Harts had contravened the Contributory Mortgage Regulations by failing to deliver its 2001 annual report to the Registrar of Companies. Also Harts had previously acknowledged extensive breaches of securities law under prior ownership and management. The Registrar had taken enforcement action relating to those breaches.

The Commission’s action is in the public interest because Harts is in liquidation and will be unable to fulfil its duties as contributory mortgage broker.

Investor inquiries should be made to Crichton Horne, Chartered Accountants, Christchurch.

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