On 26 June 2012, High Court Justice Paul Heath delivered his Judgement in relation to an action by Perpetual Trust Ltd against the Financial Markets Authority and Trustees Executors Ltd as Intervener. The Judgement went to appeal and the Court of Appeal dismissed the appeal on 4 July 2012. The matter was subject to confidentiality until midday Thursday 5 July 2012.
Related party and conflicts of interest continue to be of concern in the New Zealand market and any NZX listed company must address the issues of related party loans and the need to disclose them.
Investors, governance professionals and advisers believed that the outcomes of the finance company failures may have brought a sense of reality to related party loans practises, and these latest matters focus on the need for the highest level of diligence with related party and conflict issues.