Once
friends, Milen Ganchev fell out with Anastas Markov alleging mispricing of specialty
foods imported from Bulgaria. A power of
attorney issued in Cyprus concerning a Seychelles registered company was used
in an attempt to wind up Mr Ganchev’s New Zealand company.
Mr Ganchev owns Meditrade Ltd, importer
of European foodstuffs. The European end
of its supply chain is Alcarin Ltd, jointly owned by Mr Markov and Mr Ganchev. The two dispute what mark-up Alcarin could
charge. Mr Ganchev alleges Alcarin was
to supply product at cost, but in fact was adding margins of between 50 and 100
per cent. Mr Markov denies product was
to be supplied at cost only.
Their dispute surfaced in New Zealand
courts with a winding up demand issued by Alcarin against Mr Ganchev’s Meditrade
Ltd alleging a debt due, but unpaid.
This is a legal precursor to threatened winding up proceedings. Evidence was given that Alcarin is registered
in the Seychelle Islands but its sole director is Cypriot lawyer, Martha
Spyrides. She took a hands-off approach
to company operations. She gave a power
of attorney to each of Mr Markov and Mr Ganchev giving them full authority to
act on behalf of the company. Mr Markov
used this power of attorney to have Alcarin file winding up proceedings against
Meditrade. When Mr Ganchev told Ms
Spyrides of his dispute with Mr Markov she cancelled the powers of attorney and
purported to annul the Meditrade winding up application.
Associate judge Doogue said the powers of
attorney were given to allow individual shareholders to advance Alcarin’s
interests. It was not designed to give
one party a tactical advantage in collateral disputes between the two shareholders,
he said. Cancellation of the power of
attorney meant Mr Markov had no authority to act as Alcarin’s agent in
continuing court proceedings. The
winding up proceeding was struck out. Meditrade
indicated it will be seeking court costs against Mr Markov personally.
Meditrade
Ltd v. Alcarin Ltd – High Court (22.03.16)
16.049