Liquidator seeks special power

Press, 30 August 1980, Page 19

Liquidator seeks special power

PA Auckland The Securitibank liquidator (Mr Harold Goodman) has asked the Minister of Justice (Mr McLay) for special legislation to give him the power to take legal ac-| tion against the directors and shareholders on behalf of the creditors. ' Last month, Mr Justice Barker ruled in a High, Court judgment that Mr! Goodman did not have the authority to represent the< company creditors in a legal action — only the company. | In a report mailed to cred-

: itors, Mr Goodman said he had made extensive submis- • sions to the Minister. | - Last night, Mr Goodman ’ said he had written to the • Minister after the High ; Court decision. He expected ■ | a reply within “a week or two.” I He did confirm in the reiport, however, that he_ is' legal action againsti the directors for fraudulent' ■'trading and negligence. He > also intends taking an action >iagainst the shareholders for I breach of fiduciary duty. “I shall be commencing --(the) actions. . . at the earl-

-iest possible date and hope • [that this will result in sig- ! nificant benefit to the un- - i secured creditors,” he said i the report to creditors. i However, Mr Goodman, 1 said that, because of the; ' complexity of the actions, it could be several years before the matter was resolved ;jin the courts. :i The report also said total : I unsecured debts of Securitiybank had not been ascertained yet. Mr Goodman said they would not be , known until all claims had - been received and processed.