In the courts

The Lombard verdict: important lessons for directors
The spectacular collapse of dozens of finance companies continues to play out in the courtroom, this time in the form of criminal prosecutions of directors for allegedly defective disclosures in prospectuses, investment statements and advertisements.

The Bridgecorp decision – more convictions for defective disclosures
In the latest criminal case against the directors of a failed finance company for defective disclosures in offer documents, directors of Bridgecorp Limited have been found guilty of offences under the Securities Act, the Crimes Act and the Companies Act.

Subordination agreement applies after registration expires
Even though the registration of a subordination on the Personal Property Securities Register had expired, the High Court determined that the subordination agreement continued to apply.

Unsigned guarantee enforced
In what appears to be a first in New Zealand, an unsigned guarantee has been enforced by the High Court, in reliance on the doctrine of estoppel.

Order restored in the land of indefeasible mortgages
The Court of Appeal has determined that the Property (Relationships) Act does not prevent a mortgagee from exercising its power of sale under a mortgage except in very limited circumstances.

Mortgagee sales: how to get the best price reasonably obtainable
In a recent case, the High Court reiterated the steps required to be taken by mortgagees if they are to achieve the best price reasonably obtainable at the time of a mortgagee sale.

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.