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Power: Two Companies Put Into Statutory Management

Contributor:
Fuseworks Media
Fuseworks Media
Simon Power
Simon Power

The Government today placed into statutory management two wholly-owned subsidiaries of IHC New Zealand Incorporated, Commerce Minister Simon Power said today.

They are Idea Services Ltd and Timata Hou Ltd. The companies approached the Securities Commission requesting to be placed into statutory management in light of uncertainty as to their continued ability to provide services arising from Employment Court rulings last year.

Those rulings concerned the application of minimum-wage legislation to carers engaged in sleepover duties. "I am advised that IHC, as the parent organisation, is not affected and there is no suggestion of fraudulent or reckless conduct," Mr Power said.

"Rather, statutory management is simply intended to preserve the provision of services by the companies pending the resolution of the litigation and subsequent negotiations." The companies are funded by the Ministry of Health and the Ministry of Social Development to perform a range of services for disabled people and their families. They are registered charities.

The Securities Commission recommended to Mr Power that they be placed into statutory management. He advised Cabinet of his recommendation yesterday, and the Administrator of the Government made the Order in Council. "This decision has been taken pursuant to section 38 of the Corporations (Investigation and Management) Act 1989, and is effective from 8am today," Mr Power said.

"The Securities Commission recommended this course of action in the public interest to preserve the continuity of services provided by the companies and to enable the affairs of the companies to be dealt with in a more orderly and expeditious way.

"The Securities Commission advised that it was satisfied the companies had considered all alternatives to statutory management and that there is no other way of protecting the public interest in providing services to a vulnerable section of the community, and preserving the interests of the carers and the companies' creditors.

The Government has appointed Sir John Anderson as statutory manager of the companies. It has also appointed a committee to advise the statutory manager. Its members are: the Chief Executive of IHC and the two companies, Ralph Jones, IHC National President and a director of Idea Services Ltd, Donald Thompson, and IHC National Vice-President and a director of Idea Services Ltd, Shelley Payne.

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