10 May 2016

Insolvency: Kairmore Construction v. Wichman

Liquidators PwC recovered three Christchurch properties registered in the names of a company director and his former wife but purchased using money belonging to Kairmore Construction, now in liquidation insolvent.
In 2014, Inland Revenue put Kairmore Construction into liquidation for unpaid PAYE stretching back two years.  Price Waterhouse discovered three properties in Pages Road, Christchurch were purchased earlier in 2014 at knockdown prices using company money.  One property cost $46,000;  the other two $40,000 each.  Two were registered in the name of the company’s director: Exham Peter Wichman.  The third in the name of his former wife: Odessa Muriel Jefferies.  They refused to voluntarily sign over the properties to Kairmore.  The liquidators sued, arguing the registered owners held each property on trust for Kairmore.  No defence was filed.
Justice Dunningham ruled under the Trustee Act that the liquidators could have the properties re-registered in Kairmore’s name if the registered owners did not voluntary sign over ownership within 29 days.
Kairmore Construction v. Wichman – High Court (10.05.16)

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