Shareholders agree to pay liquidator SIM

Press, 13 March 1985, Page 4

Shareholders agree to pay liquidator SIM

PA Auckland Former shareholders of the Securitibank group of companies have agreed to pay the group’s liquidator $1 million to settle High Court proceedings he brought against them. The group’s auditors have also reached a settlement but for an undisclosed sum. Mr Justice Barker in the High Court was told on Monday that 11 shareholders had agreed to pay $1 million between them “made ex gratia and with a denial of liability.” The liquidator, Mr Harold Goodman, had brought High Court claims against shareholders, auditors and directors.

Only the claim against directors remains.

Counsel for the liquidator, Mr Ted Thomas, Q.C., told his Honour yesterday that the shareholders had been

advised of studies made of Securitibank’s financial position since its collapse. The study indicated that dividends paid out in the last year, and possibly the second-to-last year, were not paid out of profits but represented a return of capital and probably should not have been paid.

Although the dividends were received in good faith the shareholders had decided to refund the dividends with interest and an allowance towards the liquidator’s cost. Mr Thomas said the auditors had agreed to a settlement only on the basis of an express denial of liability.