Maria Young forced liquidation of their Queenstown joint venture property company after suspicions colleagues Geoffrey Short and Katrina Wardill were diverting company resources to their own benefit.
In 2019, the three jointly purchased a high-end apartment in Queenstown, intending to earn income renting as Airbnb accommodation. Title was taken in the name of their joint venture company, Remarkable Exquisite Design Ltd, with Ms Young holding a one-third share. Living in Hamilton, Ms Young came to suspect her Queenstown-based colleagues were rorting the business. A private investigator was hired. Ms Young alleged her colleagues were diverting Airbnb income into their personal bank account and at times had been living rent-free in the apartment, charging their cleaning expenses to the joint venture.
The High Court was told Ms Young was refused access to the Airbnb online booking platform. Her access to Remarkable’s Xero accounting data was blocked for over a year by Mr Short and Ms Wardhill. The two did not fully respond to allegations raised by Ms Young, Associate judge Lester said. The investors’ dysfunctional relationship meant their dispute could not be resolved by agreement. This lack of trust meant it was best to put the company into liquidation, Judge Lester ruled. An independent liquidator was appointed to sell the apartment and sort out the financial dispute.
Evidence was given that the Remarkable Exquisite purchase was the third property owned jointly by the three. Joint ownership of another Queenstown apartment had led to a welter of mutual recriminations. Proceeds from selling this apartment are currently held in a lawyer’s trust account awaiting agreement on how the surplus is to be divided.
Young v. Remarkable Exquisite Design Ltd – High Court (31.03.22)
20.069