Mike Pero acted in ‘bad faith’ when frustrating attempts by MPRE Ltd to
recover $2.1 million he unlawfully took by trying to force the company’s hand
with threats of liquidation unless it declares a dividend to cover the money he
owes, the High Court ruled.
Last year
the High Court ruled Mr Pero acted unlawfully when he unilaterally increased
his remuneration whilst CEO of MPRE Ltd: jointly owned by Mr Pero and Mike Pero
Mortgages Ltd. Repayment of $2.1 million plus interest was ordered. Mr Pero plans to set off this judgment debt
against shareholder dividends from MPRE.
The company operates a nationwide real estate agency. He wants MPRE to approve a $4.8 million
dividend. No agreement was reached. Mr Pero said this impasse triggers a
mediation clause in MPRE’s shareholder agreement. If mediation fails, an auction for the
business follows.
Associate
judge Sargisson ruled there was no dispute as to payment. Mr Pero had been ordered personally to refund
the money unlawfully taken. He was
acting in ‘bad faith’ by trying to invoke the shareholder dispute resolution
procedure in MPRE to force payment of a dividend. He is not entitled to dictate the most
convenient method of recompensing MPRE for his illegal action, she said
Pero v. Mike Pero Mortgages Ltd – High Court (28.02.18)
18.044