Forced liquidation of a family company was refused by the High Court as it would force one spouse out of their Motueka family home. A court-appointed receiver took control of the company; arguments over the family home left to be sorted out as part of their wider relationship property dispute.
Dorit Galante and Gilad Grinberg are 50/50 owners of Orinoco Organics Ltd which owns 5.6 hectares on Orinoco Valley Road, Motueka. Their family home is on the property. The High Court was told the two separated in 2018, after a twenty year de facto relationship. Division of relationship property has proved acrimonious. Disputed property includes their company Orinoco Organics, real estate in New York valued at some $6.8 million and a New York cleaning company.
With Ms Galante’s departure from Valley Road, Mr Grinberg said there had been an understanding he would take full ownership of Orinoco Organics and with it, occupation of the former family home. He was to buy out his spouse with proceeds from selling New York properties. Mr Grinberg said he is not getting full information about the New York assets. In turn, Ms Galante said her spouse is mismanaging the Valley Road property and is not keeping it fully insured. She threatened to sue Mr Grinberg for $50,000 ‘occupation rent;’ the value of his occupation of Valley Road since their separation. Mr Grinberg paid. She then took legal action to have Orinoco Organics Ltd put into liquidation, alleging Mr Grinberg’s effective control of the company prejudiced her interests as a shareholder. Liquidation could force Mr Grinberg out of Valley Road.
Justice Cull ruled both were to blame for their company’s dysfunctional governance. Ordering liquidation of Orinoco Organics was a blunt and drastic remedy, she said. Nelson chartered accountant, Geoff Falloon was put in control of the company. Mr Grinberg was left in occupation of the family home. Mr Falloon was instructed to determine what was a fair occupation rent payable by Mr Grinberg. This amount is to be taken into account in the eventual resolution of the relationship property dispute.
Galante v. Grinberg – High Court (30.11.20)
21.003