Northland construction business Kiwi Sheds Northland Ltd is being wound down under court supervision after directors Robert Gauld and Deane Rosewarne fell out, with each accusing the other of taking money from the company without authority and of taking on build contracts more properly belonging to their company.
Their company was set up in 2017, taking over Mr Gauld’s previous business operations erecting kitset garages. Ownership of the new business was split 50/50 between Mr Gauld and his former wife on one side and Mr Rosewarne and his wife on the other.
The High Court was told this arrangement began to run downhill with Mr Gauld complaining that he had no access to financial information other than raw bank account details and that Mr Rosewarne had seized his work laptop and all client files. The company bank account was subsequently frozen. Mr Gauld said he had no knowledge of whether their business was solvent or not. The practice developed of each taking on new clients separately, with Kiwi Sheds’ operations being run down.
At Mr Gauld’s request, the High Court appointed interim liquidators to take control of Kiwi Sheds’ assets. Liquidators were authorised to take control of company records and to determine Kiwi Sheds’ solvency. They were empowered to sell company assets if the company was not trading profitably. The court was told one of the business assets is land at Kerikeri with a current net worth of some $280,000.
Evidence was given of the two sides failing to settle their differences after a marathon twelve hour mediation. Agreement on a price to buy out Gauld interests was a sticking point.
re Kiwi Sheds Northland Ltd – High Court (8.08.22)
22.138