Former PM to defend legal action

Dame Jenny Shipley was a Mainzeal director. Photo / Paul Taylor

Former Prime Minister Dame Jenny Shipley's lawyer says she will vigorously defend legal action she is facing from the liquidators of collapsed property group Mainzeal.

Liquidators confirm they have filed a court claim involving allegations of a breach of directors' duties.

Co-liquidator Andrew Bethell confirmed the defendants in the claim included Shipley, Sir Paul Collins, Richard Yan, Siew May Kwan, Peter Gomm and Clive Tilby.

All are former directors of Mainzeal Group, which collapsed in 2013.

Bethell couldn't comment further as the claim was before the court.

As at September last year Mainzeal liquidators had received $151.3 million in claims from unsecured creditors.

A statement from Shipley's lawyer Michael Arthur said the claim will be "vigorously defended".

"Liquidators of Mainzeal Property & Construction Limited have commenced a civil claim against Rt Hon Dame Jenny Shipley (for whom we act) and others," Arthur said.

"The claim alleges a breach of directors' duties and seeks damages.

"It will take some weeks to review the claim and file a defence, but Dame Jenny and others strongly deny any allegation of wrongdoing.

"The claim will be vigorously defended."

Yesterday Labour SOE spokesman Clayton Cosgrove called on Bill English and Todd McClay to ask Shipley to stand aside as chair of the board of Genesis Energy while legal action was being taken.

But a spokesman for English said there were no plans to do that.

"We haven't seen anything that would require the action Mr Cosgrove is suggesting," he said.

"All directors are expected to discharge their duties to a high standard. With regards to the Genesis Board, our view is they've performed well - and one of the benefits of the Government share offer is that the performance of the board is now subject to market scrutiny."

Mainzeal, which Shipley chaired, collapsed in February 2013.

Shipley, New Zealand's first female Prime Minister, led the country from the end of 1997 to the end of 1999.