In accordance with Section 255 of the Companies Act 1993, Liquidators have a statutory duty to report to all creditors and shareholders on the conduct of the liquidation of a company during the entire period for which they have been appointed Liquidators. Six monthly reports are required to be promptly issued following a company being placed into liquidation and these reports are to be lodged with the Companies Office by the Liquidator and filed on its website www.companies.govt.nz . (It is notworthy that Court-appointed company liquidations are on the rise according to latest figures available from the Ministry of Economic Development).
Buildwise Limited (Co. No. 714048), directed by David Bruce Crow of Inglewood, Taranaki, was placed into voluntary liquidation with Insolvency specialists, Meltzer Mason Heath of Auckland, on 3 July 2009, owing $380,000 to unsecured creditors and an “unknown” amount to preferential creditors and secured creditors, according to the Liquidator’s Report dated 3 July 2009 (53 creditors were “known” at the time and listed in this report).
However, since this initial insolvency report was issued, only two further Liquidator’s Reports has been filed and made available to creditors on the Companies Office website. The first covering the period 3 July 2009 to 3 January 2010 states: “It is unlikely that there will be funds available for a distribution to unsecured creditors”. No information is provided as to funds that might be available to preferential creditors and/or secured creditors.
The next insolvency report, filed on 14 July 2010, covering the period 3 January 2010 to 3 July 2010 restates this grim news to unsecured creditors and again lacks any information on the fate of preferential and/or secured creditors.
But where is the Liquidator’s Report on Buildwise Ltd (In Liq) covering the six monthly period 3 July 2010 to 3 January 2011? It is not available on the Companies Office website. Yes, there was an insolvency ‘report’ lodged/filed at 14:27 on 14 February 2011, but it was a repeat of the third outdated report covering the period up to 3 July 2010. In other words two IDENTICAL insolvency reports have been filed creating the false impression that statutory requirements have been met by the Liquidator, whether intentionally or unintentionally, when the fact is that no fourth report has yet been filed.
Buildwise Ltd is owned by Ezisoft Computer Systems Limited (Co. No. 302576), directed by David Bruce Crow. His last Annual Return on behalf of his failed company Buildwise Ltd, dated 3 November 2009, records Ezisoft owning all 12, 000 shares in Buildwise Ltd. At that time Mr Crow owned all the shares in Ezisoft, as recorded in the Annual Return of the company he filed on 29 July 2010.
However, on 3 August 2010 he went on line and updated the shareholding records, registering the transfer all his 1,000 shares in Ezisoft into the name to Carolyn Rose Crow of Inglewood. The latest Annual Return filed by Mr David Bruce Crow, filed on 23 June 2010, records himself as director of Ezisoft and Carolyn Rose Crow as continuing to hold all the shares in the company – Ezisoft – that owns his failed company – Buildwise Ltd
The fifth insolvency report on Buildwise Ltd covering the period to 3 July 2011 has not yet been filed on the Companies Office website.