20 September, 2010
Two further Hubbard companies in statutory management
The Government today placed into statutory management two further companies that hold assets on behalf of businesses associated with Mr Allan Hubbard, Commerce Minister Simon Power has announced.
They are Hubbard Churcher Trust Management Ltd and Forresters Nominee Company Ltd, 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 Ltd.
The move is a result of ongoing investigations by statutory managers into Aorangi Securities Ltd 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 Ltd, Temple Bar Family Trust and Barns Charitable Trust, were put into statutory management on September 13.
Mr Power advised Cabinet of his recommendation today and the Governor-General made the Order in Council.
Hubbard Churcher Trust Management Ltd (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 Ltd has Mr Hubbard as its sole current director and shareholder.
"The decision to put these two companies into statutory management is a result of the ongoing investigations by the statutory managers," Mr Power said.
"It has been taken pursuant to section 38 of the Corporations (Investigation and Management) Act 1989, and was effective from 5.30pm today.
"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. 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 Ltd, and the nine trusts, have been appointed statutory managers of the two companies.