Hoggard could have lost triple his profits

By GEOFF SENESCALL

Fletcher Challenge could have asked its fallen chairman, Kerry Hoggard, to pay up to three times his profits for breaking the rules under securities laws.

Instead, the company asked the former chairman to pay back just his profit of $58,000, made from buying shares in the four Fletcher letter stocks one day before a major announcement.

A Fletcher spokesman said yesterday the board made its decision at the time that it was appropriate Mr Hoggard pay back his profits to affected shareholders who sold to him. "That is what Mr Hoggard did."

Following last week's release of the Securities Commission report's findings, which found Mr Hoggard to be an insider trader, Fletcher Challenge chairman Rod Deane said the company would not take any further action. Should the company have wanted to, however, there were provisions for it to do so.

Under part 1 of the Securities Amendment Act 1988, the court can "impose a penalty of up to the consideration for the securities or three times the gain made or loss avoided where liability is established."

This could have seen Mr Hoggard pay up to $174,000 should Fletcher Challenge have pushed it.