Liquidators for legal-high company Eversons have a Court of Appeal ruling forcing director Evan Stewart into court to explain what happened to some two million dollars withdrawn from Everson’s bank account days before a government law change prohibited sales of synthetic highs.
Eversons International Ltd is in liquidation with Inland Revenue claiming $3.7 million. The company’s tax accounts make reference to overseas investments totalling $6.5 million, overseas investments Mr Stewart denies any knowledge of. Liquidators questioned him in early 2021 at their KPMG office. Mr Stewart denied knowing what Eversons offshore cash transfers were used for. On further questioning, he said the company’s overseas investments had ‘flopped.’ When liquidators later identified an Australian solicitor who had supposedly received Eversons funds for onward investment, she told liquidators she was unaware of Eversons’ existence and did not act for the company. Mr Stewart refused to attend any more meetings with Eversons’ liquidators. He challenged a High Court order that he attend at court for further examination about company operations saying one round of questioning by liquidators was enough and he did not have to answer any more.
The Court of Appeal ruled there was no policy reason why a court-ordered examination should not follow. Mr Stewart had been un-cooperative at the earlier voluntary meeting with liquidators. As sole director of Eversons, Mr Stewart would be expected to know what had happened to company assets, the court said.
The effect of a court-ordered examination is that a director can be forced to produce company books and records in court and is liable for perjury if questions are answered dishonestly.
Stewart v. Fatupaito – Court of Appeal (18.02.22)
22.038