Hohua Hemi’s attempt to liquidate used-car importer Autoterminal New Zealand over an alleged forty million dollar debt, part of his global dispute with business colleague Robert Stone, was struck out by the High Court. Mr Hemi alleges Autoterminal director Mike Tyler is siding with Mr Stone.
Mr Hemi’s Companies Act claim that Autoterminal New Zealand Ltd be wound up on ‘just and equitable grounds’ was struck out by Associate judge Smith. Suing for liquidation in the name of allegedly unpaid Japanese supplier IBC Japan could not be used by Mr Hemi to fight out a dispute between himself and Mr Stone as shareholders of New Zealand-registered importer, Autoterminal.
The Autoterminal dispute is one of multiple legal cases both in New Zealand and elsewhere in the world where Mr Hemi and Mr Stone are fighting over control of their joint business empire. The High Court was told the two had been in business together since the early 1990s; purchasing used cars in Japan and selling them in New Zealand and elsewhere. Multiple companies handling their business affairs were set up around the world; each owned 50/50 by Mr Hemi and Mr Stone, typically with trustees appointed to handle their separate business interests.
Current New Zealand litigation centres on Autoterminal, set up in April 2000. Shares are currently in the name of Hamilton-based Mike Tyler. He admits to holding as trustee, but there is a dispute as to whom the shares are held in trust for. Mr Hemi says Mr Tyler holds half the Autoterminal shares as trustee for him. Mr Tyler disputes this. Mr Tyler refuses to release any financial information to Mr Hemi. Mr Hemi alleges Autoterminal has failed to comply with a 2014 ‘vehicle supply agreement’ covering importation of used cars. Mr Hemi further alleges Autoterminal owes IBC Japan at least forty million dollars for cars exported from Japan and sold in New Zealand. The High Court was told of rumours circulating in the used-car trade, sourced from IBC Japan, that Autoterminal was going into liquidation and that Mr Tyler was going to jail for fraud. Mr Hemi has a fifty per cent stake in IBC Japan. Since May 2018 he has been IBC’s ‘representative director’; a requirement of Japanese company law.
IBC Japan’s claim to be owed over forty million dollars by Autoterminal is subject of separate legal proceedings filed in the High Court. In further legal proceedings, Mr Hemi seeks a court ruling that Mr Tyler holds half the Autoterminal shares in trust for him.
IBC Japan Ltd v. Autoterminal New Zealand Ltd – High Court (6.08.19)
19.143