Man lost all assets

Press, Volume CXV, Issue 33790, 12 March 1975, Page 1

Man lost all assets

A man told a meeting of creditors in Christchurch yesterday that he had paid $15,000 into a Wellington company, and had then found himself responsible for $10,244 in debts, the greater part of which had been incurred by a related Christchurch company which he later found had never been registered.

Thomas Robert Verry, aged 48, now a factory hand, said that over about 13 months he had lost all his assets — business, house, car, and other possessions—and was now living in rented accommodation and earning $7O a week. Of that, he paid $3O a week for an unfurnished house.

He said that his present circumstances were the result of putting his trust in the word of a Wellington businessman he named as G. I. Mclntosh. Mr Mclntosh had persuaded him to invest in a company to be formed in Christchurch to paint houses with plastic spray paint.

The company had traded for some months in Christchurch as Comfort Homes (1966, Christchurch), Ltd, from rented premises in Moorhouse Avenue.

After giving sworn evidence before the Official Assignee (Mr I. A. Hansen), Mr Verry asked if Mr McIntosh could be brought to book for his part in the loss of his money and the debts incurred by the supposed company.

He said that Mr Mclntosh was living in Marlborough. [The Registrar of Companies in Wellington confirmed yesterday that two companies—Comfort Homes (1966, Wellington), Ltd, and Comfort Homes 1966, Ltd—were in liquidation and the Official Assignee, Wellington, was the official liquidator. The company register gave the name of the director as Graeme Ivan Mclntosh.] Under examination by Mr Hansen, Mr Verry said that Mr Mclntosh had persuaded him to invest $15,000 for the company 'to be set up in Christchurch. He had made out the money in four cheques to Comfort Homes (1966, Wellington), Ltd, and had sent them to Mr Mclntosh. “NO SAY” Mr Verry had moved to Christchurch and taken over as manager of the company which began trading as Comfort Homes (1966, Christchurch), Ltd. Mr Mclntosh had come to Christchurch and had opened an account in the name of the company and he and Mr Mclntosh were the signatories. Mr Verry said he understood that the account had about $2O or $3O to start with.

He said he had found an office waiting for him fully equipped with furniture. Mr Mclntosh had told him that all the money, he had invested had gone in to setting up the office.

Mr Verry said he later discovered that some of the office furniture was leased. He also found that he had virtually no say in the running of the business. Three

months after he began work, he discovered that the company had still not been registered. He had telephoned the company’s solicitors in Wellington and had been told that the matter was in hand. Another three months later, he found that the company had still not been registered. He had drawn wages for only the first three months he had been working with the supposed company. He agreed that the company finally collapsed in a heap in June, 1974. Before that, a man from Wellington had come to Christchurch and uplifted all the company’s books, including- the wages books.

The company traded profitably for a start, but labour and weather problems had contributed to its demise.

Summarising, Mr Hansen said that creditors would appreciate that any comments he might make could prejudice action which might be taken in the future. He said he had already looked at the question of Mr Verry being involved in a partnership either with Mr Mclntosh or the Wellington company. “We have also looked at the question as to whether he could be held liable for the debts incurred in the name of the company. “I think I can say I have no reason to doubt that when Mr Verry incurred the debts in the name of the company he had a genuine belief that this company was a separate identity.

“He was remiss in not engaging counsel to look after his affairs. It was very foolish to lay out $15,000 with nothing to authenticate that investment,” Mr Hansen said.