Another two entities associated with Timaru businessman Allan Hubbard have been placed in statutory management.They are Hubbard Churcher Trust Management and Forresters Nominee Company, two companies that hold assets connected with Hubbard Management Fund
Another two entities associated with Timaru businessman Allan Hubbard have been placed in statutory management.
They are Hubbard Churcher Trust Management and Forresters Nominee Company, two companies that hold assets connected with Hubbard Management Funds.
Prime Minister John Key said at his post cabinet conference today that the government had hoped to keep the two entities out of statutory management but was unable to do so.
Commerce Minister Simon Power said the decision followed a recommendation by the Securities Commission, which acted after receiving a report from the statutory managers of Aorangi Securities.
Mr Power advised the 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 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. I am advised the directors of HCTM do not object to the placing of HCTM and Forresters Nominee Company Ltd into statutory management," he said.
"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.
The new entities follow two further charitable trusts added last week – Temple Bay Family Trust and the Burns Charitable Trust.
Mr Hubbard and his wife Jean, their finance company Aorangi Securities and seven charitable trusts were placed in statutory management on June 20.
A second company – Hubbard Management Funds – was later included.
The Serious Fraud Office is also investigating Aorangi.
Since the appointment, Mr Hubbard’s main asset – South Canterbury Finance – has collapsed into receivership, triggering a $1.6 billion payout to investors under the Crown deposit guarantee.
