In the courts

Directors cleared of liability under the Financial Reporting Act
Represented by Bell Gully, the former directors of Feltex Carpets Limited successfully defended charges under the Financial Reporting Act for certain errors that appeared in Feltex's 2005 interim accounts.

Penalty interest post - judgment enforceable if agreed
The High Court at Christchurch determined that, for penalty interest to be payable post-judgment at a rate that is above the statutory rate, the parties must have specifically agreed.

When is an individual a "de facto" director under the Securities Act?
The High Court considered whether it was necessary for a person to be formally appointed as a director of the issuer for the purposes of establishing that person's liability under the Securities Act, or whether the Act also applied to "de facto" directors of the issuer.

Applying the Securities Act's minimum subscription amount safe harbour exemption
In a recent Court of Appeal decision involving an offer of participatory securities, the court had to determine whether the offer came under the minimum subscription amount safe harbour exemption. The particular question for the court was whether the "allotment" of the securities occurred before the purchaser's obligation to pay was due and thereby had excluded the application of the safe harbour exemption on the facts.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.