Four of five Capital + Merchant directors have applied to have criminal charges against them dismissed on grounds of what the court heard today to be “administrative” legal issues.

Directors Neal Nicholls, Owen Tallentire, Colin Ryan and Robert Sutherland, together with Wayne Douglas, who was registered as a director in February 2007, face criminal charges laid by the Securities Commission.

Mr Nicolls and Mr Douglas appeared in the Auckland District Court this morning while the three other directors were excused due to their living in Australia.

Counsel for Messrs Nicholls, Ryan, Sutherland and Douglas told the court they had applied to have the charges dismissed and requested the four be remanded at large until a hearing on August 4.

Bruce Gray, QC, acting for Mr Douglas and Mr Nicolls, told NBR the application related to the Crown’s “obligation to provide disclosure of information” when it laid charges.

Mr Tallentire had not joined in the application.

“So he’s going to go the distance then?” Judge Phil Gittos said.
Mr Tallentire’s lawyer replied: “I wouldn’t like to say so.”

Judge Gittos remanded all five directors at large until August 4.

The Securities Commission alleges the five directors made untrue statements in a registered prospectus and investment statement, mainly in respect of related party lending and loan management.

Most of the criminal charges the directors carry a maximum penalty of five years imprisonment or fines of up to $300,000.

Capital and Merchant went into receivership in November 2007 owing around $167 million to 7000 investors.