They are Hubbard Churcher Trust Management and Forresters Nominee Company, two companies that hold assets connected with Hubbard Management Funds.
The decision to put the companies into statutory management follows a recommendation by the Securities Commission, which made its recommendation after receiving a report from the statutory managers of Aorangi Securities.
The move is a result of ongoing investigations by statutory managers into Aorangi Securities and seven charitable trusts, which were put into statutory management along with Mr and Mrs Hubbard on June 20.
Two further trusts related to Aorangi Securities, Temple Bar Family Trust and Barns Charitable Trust, were put into statutory management on September 13.
Commerce Minister Simon Power advised Cabinet of his recommendation today and the Governor-General made the Order in Council.
Hubbard Churcher Trust Management (HCTM) is owned and operated by the partners of HC Partners in Timaru, an accountancy firm formerly known as Hubbard Churcher.
HCTM holds the majority of the investment assets of Hubbard Management Funds, which invests funds on behalf of 300 investors. HCTM is also a corporate trustee for some clients of HC Partners.
Forresters Nominee Company has Hubbard as its sole current director and shareholder.
Power says the decision to put these two companies into statutory management is a result of the ongoing investigations by the statutory managers.
It has been taken pursuant to section 38 of the Corporations (Investigation and Management) Act 1989, and was effective from 5.30pm today.
Power says the Securities Commission recommended this action to preserve the interests of the beneficiaries of trusts administered by the companies, preserve the interests of investors in Hubbard Management Funds in the public interest and allow the affairs of the companies to be dealt with in a more orderly or expeditious way.
"The Securities Commission was satisfied that those interests could not be adequately protected any other way.
"I am advised that the Securities Commission consulted Mr Hubbard's legal representatives and the other directors of HCTM before it made its recommendations."
He says they were all advised this afternoon of the Government's decision.
"I am advised the directors of HCTM do not object to the placing of HCTM and Forresters Nominee Company Ltd into statutory management.
"I am advised that the directors of HC Partners will be in touch with their trust clients shortly."
Trevor Thornton, Richard Simpson, and Graeme McGlinn, the statutory managers of Aorangi Securities and the nine trusts, have been appointed statutory managers of the two companies.
| « News Round Up | KiwiSaver mismatch a 'huge challenge' for advisers » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved