28 Jun 2013
FINANCIAL MARKETS AUTHORITY v MARK STEPHEN HOTCHIN [2013] NZHC 1611
- Citation
- [2013] NZHC 1611
- Court
- High Court
Third party contribution claims by Hotchin against the trustees are struck out because, although trustees may owe duties to monitor compliance under trust deeds and such duties may in some circumstances extend to prospective or roll-over investors, any liability of the trustees would be for losses caused by their failure to act during the period of wrongful inaction and is not the same damage as the loss caused by directors' untrue statements at allotment; trustees do not owe a tenable duty to verify overall prospectus accuracy; indemnity issues raise factual questions and do not justify stri…