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Sheriff

this is Kerry Hoggard

11 posts in this topic

Despite some good people at the coalface, the outfit is a joke. It was proposed to have an independent board.

What have we now?

 

Hoggard never admitted nor was convicted of insider trading. He reached an out of court settlement on the matter, supported by the High Court, even though the evidence made public is damning.

 

http://www.nzherald.co.nz/sharemarket/news/article.cfm?c_id=316&objectid=1292898

 

 

High Court clears Hoggard settlement
 
5:00 AM Wednesday Apr 3, 2002
 
 
 

By DANIEL RIORDAN

The High Court has approved the out-of-court settlement of the insider trading case brought against former Fletcher Challenge chairman Kerry Hoggard.

But the shareholders who won the settlement warn a proposed law change will prevent future successes.

Catharine Franks, wife of Act MP Stephen Franks, and Business Roundtable executive director Roger Kerr sued Hoggard on behalf of Fletcher Challenge after the company's board decided not to.

The case related to Hoggard's trading in Fletcher Challenge shares in December 1999.

Hoggard has agreed to pay $350,000 into a trust set up by the plaintiffs which will fund cases against those suspected of breaching principles of commercial law, and to meet the legal costs of Fletcher Challenge and its shareholders up to $170,000.

Hoggard - who has not admitted insider trading - also paid $58,000 to those who sold shares to him before the share price rose, and funded his own legal costs.

The trust, whose initial trustees are Stephen Franks, Sir Ronald Trotter and Kerr, plans to help fund cases "that are clearly meritorious but which are otherwise unlikely to proceed, and where there is an issue of generally agreed commercial morality at stake."

Stephen Franks, a former Securities Commission member, said the trust was unlikely to get involved over issues such as failure to file returns on time, "but anything smacking of dishonesty" would be a candidate.

However, he says the chances of anyone duplicating the success will be stymied by law changes promoted by Commerce Minister Paul Swain.

Franks said the greatest obstacle to the plaintiffs' insider trading suit was the denial of access to commission evidence.

He said it took months and $100,000 in legal costs to win a court order to hand it over. Swain's Securities Markets and Institutions Bill removes a requirement under the existing Securities Act for the commission to provide information to plaintiffs.

It also removes the right of shareholders to require the company to get an opinion from an independent lawyer, at company expense, on whether there has been insider trading.

Swain counters that the commission is being given an enforcement role for insider trading that compensates for the requirement's loss, and that the courts will still be able to order companies or directors to provide information or assistance to shareholders.

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God, if ever there was cause for a no confidence motion this is it, surely ? Strength in numbers. Now what say a prospective first time owner considering investing in the sport reads all this ? Will they then withdraw for so many reasons? Maybe not, but then again? As you correctly point out zzz, this fellow puts self interest and ego ahead of all else.

Not a good look for NZ, but no one's likely to read this anywhere but here eh?...... Not mainstream press where questions would be asked. Get the racing minister involved, as this is poor pr for racing and for morale amongst good racing folk.

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It'sinteresting that the Chairman of the RIU and the General Manager are or have been Harness Racing people. Does this suggest that "more" scrutiny is required in Harness Racing or, if that is so, then shouldn't there be a TR person in either the Chairman or General Manager role? The GM is fairly well regarded so if he stays then perhaps a TR person should be the Chair of the Unit?

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