09 October 2017

Liquidation: Che v. Nutri-Health Holdings

After first attempting to force out local Chinese minority investors, Shanghai interests walked away from their New Zealand export business, Nutri-Health Holdings.  The High Court put Nutri-Health into liquidation so an independent liquidator could investigate the company’s operation. 
The High Court was told Eva Che set up Nutri-Health Holdings Group New Zealand Ltd in 2012 to facilitate food exports to China.  On board as majority shareholders were interests associated with Mr Shui Xiong Lin, chairman of Shanghai-based Vigor Industrial Developments Investments Holdings Co Ltd.  Ms Che ran New Zealand operations, reporting back to Vigor Industrial in Shanghai.  She said problems arose when Mr Yi Que came to New Zealand in mid-2014 to represent Shanghai interests.  She alleges he tried to take over the business and force out minority shareholders by removing local directors, firing Ms Che as an employee and launching legal action claiming directors had not complied with their statutory duties.  Ms Che said this legal action stalled when multiple claims were brought in the Chinese courts by the China Railway Materials Xiamen Steel Co Ltd against Mr Lin and his companies for amounts totalling $NZ142.44 million.  Ms Che said she was disturbed to later learn Nutri-Health had been abandoned with unpaid income tax and ACC debts.  The company’s bank account had been emptied.  Enquiries of the company’s tax accountants provided no useful information.  Mr Que could not be found.  He is believed to have left New Zealand.
Justice van Bohemen put Nutri-Health into liquidation.  The company had been abandoned by its majority shareholders, he said.  It appears to have no assets, other than an Audi Q7 retained by Ms Che.  The Chinese-based majority shareholders made no appearance at the High Court hearing. 
Che v. Nutri-Health Holdings Group New Zealand Ltd – High Court (9.10.17)

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