Companies Act breaches

Press, 2 May 1981, Page 4

Companies Act breaches

The H. P. Holt, Ltd, companies, which , were said by their counsel (Mr A. J. Forbes) in the District Court yesterday to have become insolvent, and to have owed creditors $1.5 million, were convicted and fined a total of $2OO for breaches . of the Companies Act in the years 1977 and 1978. The fines comprised $lO on each of 20 charges against companies in the group, laid under section 132 and 200 of the Companies Act, and involving breaches by failing to make annual returns to the district registrar of companies, failing to notify changes of address of directors, and failing to notify appointments and resignations of directors. Judge McAloon also imposed court costs of $lO on each charge, and solicitors' fees totalling $5O. The companies involved were H. P. ,Holt, Ltd. Grove Estates. Ltd. Hire' Services. Ltd, Roydvale Timber and Joinery, Ltd, Styx Contractors, Ltd, and International Livestock and Joinery. Ltd. the latter company was said yesterday to be not an associated company within the group, but one having the same directors and shareholders. The principal of the group, Henry Peter Holt, a company director, was also fined $lO on each of 20 similar charges, with $lO costs on each and a total of $5O solicitors' fees. William Patrick Baldwin, a company director, was discharged without conviction under provisions of section 42 of the Criminal Justice Act, upon payment of $25 on each for two breaches under the Act in relation to International Livestock, Ltd. Mr Forbes entered pleas of guilty on behalf of the companies and the individual defendants on the charges.

Mr B. M. Stanaway appeared for the registrar of companies. Mr Stanaway outlined the circumstances of the offences. and said a number of reminder notices and warnings had been sent to the companies and its principals, and Holt acknowledged that reminders had been received. The individual defendants had been charged as officers responsible for the companies prosecuted. Mr Forbes referred to the curcumstances in which H. P. Holt, Ltd. suffered severe financial difficulties arising from the Securitibank collapse. It ceased trading in 1975. Had the company's claims to recover the balance of moneys owing on the hotel projects been successful this company would have been solvent and the other companies would have benefited and got out of trouble in terms of solvency. Mr Forbes said that in the circumstances the formalities involved in complying with the Companies Act provisions had not been complied with. The company had not traded and was insolvent, and had no funds to pay the filing fees to comply with the act, and no funds to pay anybody to prepare the forms. Mr Forbes said H. P. Holt. Ltd, and the other companies would have ordinarily gone into liquidation, either by court order, or voluntary winding up; but they were kept intact principally for the benefit of shareholders to enable them to pursuetheir claims. The Judge said that when individuals or groups saw fit to incorporate a business into a company they undertook certain obligations, including the requirement to provide statutory information available to the public.