Nathans Finance pair consider next move

Nathans Finance director Kenneth Moses. Photo / Dean Purcell

The article below states that former directors of Nathans Finance Ltd (in receivership) Kenneth Moses and Donald Young had dropped their opposition to a banning order proposed by the Registrar of Companies. This is not the case. The review proceedings taken by the former directors and Gary Stevens challenged the Registrar from continuing with a consideration of whether to ban or not - given the former directors did not have all the relevant material in order to make submissions to the Registrar (in opposition to any banning order). The material will now be made available and the former directors will then be in a position to make submissions as they wish. Once submissions are received the Registrar will then determine whether to ban or not. Opposition to any ban has not been abandoned.

Former directors of Nathans Finance have dropped their application to fight an action to ban them from future directorships, clearing the way for the Crown to proceed.

Directors Kenneth Moses and Donald Young were fighting the Registrar of Companies' attempt in the High Court at Auckland to ban them over the commercial failure of Nathans Finance.

They have since discontinued their applications to fight the ban. In July, the Ministry of Economic Development's National Enforcement Unit said it had made steps to ban Moses, Young, John Hotchin and Mervyn Doolan.

The unit also wanted to ban Gary Stevens, who was involved in related-party lending with Nathans Finance.

Although Doolan and Hotchin were not opposing the application to ban them, they would have benefited from the result had Moses and Young been successful.

The enforcement unit investigates and prosecutes offences under various legislation on behalf on the Official Assignee, the Registrar of Companies and the Registrar of Motor Vehicle Traders.

If directors are banned, they are prohibited from being on a board or promoting a company for up to five years.