Scaffolder Marcus Kennerley’s relationship with Christine Heagney developed into a jointly owned business where her credit-worthiness was of assistance. When they split up, she was left fielding creditor complaints whilst he proved evasive in having their business valued and her half share paid out. The High Court ordered their jointly-owned company Scaffold Alchemy Ltd into liquidation with an independent liquidator in control.
The High Court was told that as their two year relationship became more serious they decided in late 2021 to jointly operate a scaffolding business. With the two as 50/50 shareholders of Scaffold Alchemy and Marcus as sole director, the South Auckland company attracted some valuable commercial work.
They put in $10,000 cash. A further $45,000 working capital was provided by ASB Bank, guaranteed by both.
Christine told the High Court she did the backoffice admin work. Her personal vehicle was pressed into service to tow work trailers.
Within a year their personal relationship was at an end. Christine was disturbed to see Marcus taking company funds for what she says were personal expenses.
Her online access to company financial records was cut.
Marcus responded half-heartedly to her requests that he buy out her half share. Failure to agree on end of year financial statements was a stumbling block. Marcus initially agreed to allow Christine access to the relevant accounting information, then changed his mind.
She asked the High Court to put Scaffold Alchemy into liquidation on ‘just and equitable’ grounds; the owners were deadlocked and there was no realistic option but liquidation.
Associate judge Sussock ordered liquidation. Marcus did not defend the application.
The liquidator’s first report filed at the Companies Office lists as supposed company assets vehicles, plant and equipment with a book value of just over $200,000.
Christine says these assets are being used for a new scaffolding business Marcus set up.
Heagney v. Scaffold Alchemy Ltd – High Court (1.05.24)
24.112