Hacked
emails and an allegation of theft surfaced in a multi-million dollar dispute
over operation of renowned north Canterbury Te Mania Aberdeen Angus Stud. Third generation owner Timothy Wilding fell
out with his business partners resulting in a no-holds barred two-month High
Court trial after failed attempts to negotiate a commercial solution.
Justice Davidson ruled
Mr Wilding be given the opportunity to buy out his business partners’ majority
shareholding. Livestock on hand alone is
valued at $2.4 million. Valuation of
some other company assets are disputed. A
final figure for the value of shares in Te Mania Livestock is yet to be set. Ownership of grazing land has created
complications. Stud cattle graze on land
owned by a separate Wilding company and on other land in the area, in part on
informal leases with no firm terms.
Established on the
Conway River in 1928, Te Mania was recapitalised in 1997 with local and
overseas investors buying in. The Wilding
family was left with a forty per cent stake.
Evidence was given of
growing hostility around 2012 between Mr Wilding and fellow director Mr John
Harrington particularly over allegations that Te Mania cash was being used to
fund Wilding family interests. Mr
Wilding personally was under financial pressure. Tempers flared as he looked to increase
grazing fees. Singaporean shareholders
wanted out, dissatisfied with returns on their investment. Each block of shareholders has the right to
appoint a director and with directors unable to agree on the way forward writs
began flying. Mr Wilding sought unsuccessfully
to have Mr Harrington removed as director.
Mr Harrington in turn resigned as general manager of Te Mania and with
other directors tried to put the company into liquidation. Mr Harrington was charged with allegedly
stealing hay from Te Mania and when this charge was later dropped Mr Harrington
unsuccessfully sued Mr Wilding for malicious prosecution and abuse of process.
The court was told Mr
Wilding’s brother-in-law used his knowledge of the company’s email system and
Mr Harrington’s password to monitor and pass on Mr Harrington’s email traffic. This gave Mr Wilding knowledge of his fellow
directors’ and shareholders’ plans and the legal advice they had received.
Justice Davidson said
there had been an irretrievable breakdown in relationships between the Wilding
family and other shareholders. He ruled
Mr Wilding be given the opportunity to buy out shareholders wanting to
exit. A clean break was promised. Mr Wilding told the court that if he gained
full control of Te Mania he would not use the company as a weapon to sue its
former directors and shareholders. He
said he could find sufficient funds to pay exiting shareholders at fair value
for their holdings. Justice Davidson
indicated that China-based shareholder Mr Weiguo Hong with his fifteen per cent
shareholding might increase his investment to fund the buyout.
Wilding
v. Te Mania Livestock Ltd – High Court (12.04.17)
17.034