Having their rented Tauranga property held in the name of a company they controlled meant the house was a company asset liable to be sold when their company went into liquidation the High Court ruled, over objections by shareholders Tama Hovell and Kristy Hill that this was incompatible with Maori tikanga.
They claim the property is free from seizure because it provides a ‘space for Maori hapu whanau tangata whenua from across the region.’
In late 2022, their company Takimano Ltd was forced into liquidation by Carters Building Supplies for an unpaid trade debt.
The liquidators’ report states they have failed to co-operate in the liquidation.
A 2023 application to the Maori Land Court seeking to stop liquidation was dismissed. The court said it had no jurisdiction over liquidations.
They then challenged liquidators’ attempts to sell an investment property on Waitao Road, Tauranga, registered in their company’s name. The ‘Westminster system and English law’ does not override Maori custom they argued.
Liquidators got a court ruling confirming the High Court has jurisdiction. Associate Judge Brittain advised Mr Hovell and Ms Hill had to live with the consequences of their actions; by taking title in the name of their company, the investment property was a company asset.
Next step for the liquidators is to get an order for possession, prior to sale.
Khov v. Hovell – High Court (7.11.24)
25.028