FMA demands $30m from Hanover directors
Groups helping out-of-pocket investors in failed finance company Hanover are delighted six former directors could be ordered to pay up to $5 million each if a new civil action against them is successful.
Market watchdog the Financial Markets Authority (FMA) has taken a civil court action against Mark Hotchin, Eric Watson, Greg Muir, Sir Tipene O’Regan, Bruce Gordon and Dennis Broit for allegedly misleading or untrue statements made in Hanover offer documents.
New documents seen by the Herald on Sunday show the FMA is seeking $30m from the six – or $5m each.
If the former directors were to lose, it would “at least be a start” but “not enough”, Tim Rainey, spokesman for the 3000-strong Hanover Action Group said last night.
It will be interesting to see the outcome of this case although one shouldn’t hold ones breath.
New Zealand Herald