The Courts Trial of former manager to finish today

Press, 24 April 1980, Page 7

The Courts Trial of former manager to finish today

After Fissenden Haulage, Ltd, had been sold to a Blenheim company for $306,000 as the result of the negotiations of William Gray Henderson, the three Fissenden brothers had told him that there would be no problem about his payment of $20,000, Henderson said in the High Court yesterday. The trial of Henderson, aged 64, a former managing director of Fissenden Haulage, Ltd, on three charges of fraud alleging that he drew cheques on the company for $15,184 to which he was not entitled, will finish today. Mr Justice Cook is presiding Mr G. K. Panckhurst appears for the Crown, and Mr J. Cadenhead and Miss J. M.

Drake for Henderson, who has pleaded not guilty. The trial began on Monday. Opening the case for the defence Miss Drake said that it was not denied by the defence that Henderson drew $15,184 from the account of Fissenden Haulage, Ltd, and credited it to his own account at the Bank of New Zealand in Rangiora. But what the defence said was that that sum was held in trust and that Henderson had no intent to defraud, nor a guilty mind, and that he was entitled to the money.

A man was entitled to a reasonable remuneration for his services based on the work he performed. The defence said that Henderson

had not been adequately paid for the work he had done. He had taken a run-down company with a critical cash shortage, almost on the verge of bankruptcy, and built it !up so that it was able to be sold for a very large capital gain. Both Henderson and his wife would give evidence about promises made to Henderson by the Fissenden brothers about payment for his services. This matter should have been dealt with as a civil case,

The jury did not have to decide that Henderson was actually entitled to the money before acquitting him but merely that he thought he I was and did not believe he

was doing anything wrong. It was not a question of what the jury considered was right but what Henderson thought was right and it was submitted that the evidence would show that he was right. When Henderson began to work for Fissenden Bros, Ltd, in 1971, the financial affairs of the company were in such bad shape that Henderson agreed not to take the full wage which he was entitled to but would wait until the firm’s liquidity position permitted a proper salary to be paid. Evidence would be given by Mr Beattie an accountant, of the salary Henderson should have been paid for his professional services and

that what he was paid was far below what he should have been for his responsibilities.

Henderson would say that he was given a complete mandate to negotiate the sale of Fissenden Haulage, Ltd. and as various figures were reached in the bargaining process he was told by the Fissenden brothers that anything he obtained over those sums would be his. Expert evidence would be given that the sale of the company for $306,000, obtained by Henderson, was more than favourable for the vendors and represented a capital gain of $159,000. Not only did Henderson haul the company up by its bootlaces, but' he continued to work for it for many months after the sale was completed collecting a very substantial amount of outstanding debts owed to the company. As the years went past Henderson was not paid the money to which he was entitled and which he had been promised: there was little wonder that he took

matters into his own hands. Henderson knew that the withdrawals by cheque would show up on the bank statement received by the Fissenden brothers and that they would approach him about the matter. That was why he placed the sums on trust for Fissenden Haulage, Ltd, and that was what he told the Rangiora manager of his bank. At all times Henderson had sufficient funds to cover all three cheques. Miss Drake said. In his dealings with the company’s bank manager in Kaikoura, Henderson had been completely frank and open during discussions before he drew the cheques, which showed he had no guilty mind or intent. The manager had told him that he understood Henderson had authority to draw those cheques. Evidence would be given by Henderson that after meetings in 1978 John Fissenden knew that Henderson was going to draw those cheques but not the exact amounts because that still had to be calculated. Henderson drew one cheque for $24,500 for John Fissenden so that the money could be paid into an interest bearing account, Miss Drake said.

Henderson said in evidence that he lived at West Eyreton and had no convictions. For some years he had worked in an importing and exporting partnership with his father and brother. Later he ran businesses on his own account, spent six years in cattle and sheep farming and then ran a fishing lodge on the West Coast. At the suggestion of Mr Kerridge, the secretary of Fissenden Bros, Ltd, he took over the running of that company after he had spent some time in retirement and

became bored. The company was in financial difficulties and the records needed straightening out. He was told that the three Fissenden brothers who took the business over from their father did not communicate with one another and the company appeared to be making a substantial loss on a contract for the Marlborough Harbour Board at Picton.

At the time he had been offered a job with another firm for $BOOO a year but agreed to work for the contracting and transport company for $5O a week for the first six months because it presented a challenge to him.

He discovered that the company had no system, directors’ meetings had not been held during the 11 years of operations, and its affairs were in utter chaos. He changed the firm’s bank so that better overdraft facilities could be obtained and he arranged directors’ meetings each month. Originally he had anticipated that he would work no more than 20 hours a week but because of the state of the company he had to work practically seven days a week from the outset. There was a lack of cooperation from the staff. Because of his efforts he obtained a number of valuable agencies for the firm. In January, 1972, he decided to leave but was asked to stay on and his salary was increased to $lOO a week which he considered a mere pittance and not a proper wage.

It was decided, because of some dissension about which side of the business was making the profits, to separate the transport and contracting operations and Fissenden Haulage, Ltd, was set up, Henderson said. After a heart attack which shortened his life span, he > did not take time off as. advised by a doctor, but< continued to work. ‘ Even-j tually he wanted to resign! but Graham Fissenden, the brother who was later killed in a tractor accident, made promises about his remuneration which were supported, by the other brothers and he' agreed to stay on. i It was decided to appoint a manager at a salary of $BOOO a year with a free carl ard other fringe benefits. I Henderson said that he considered that the company; owed him $30,000 but he had told Graham Fissenden that he would be happy with $20,000 if he got it tax free. The money was owing for salary, replacement of his car and director’s fees. He had discussions with Graham Fissenden about the various methods which could be used to pay him what he was owed, Henderson said. It was suggested that he >stav on as a director and be

paid $4OOO a year for five years. Early in 1974 he was advised to go to Green Lane Hospital for a heart operation and he decided to leave the company. The increasing cost of new vehicles was making it; harder to make a profit and a decision was made to sell the transport company. He was appointed to negotiate a sale which began at a starting figure of 5126.000 and it was eventually sold for $306,000. After the sale was finalised the Fissenden brothers were very happy and they all agreed that there would be no problem about the payment of his $20,000 and they went to a hotel for a drink, Henderson said.