John Edward Clancy: Today Stuff News (“Debts pile up as company director can’t be found”) reported on two Auckland-based, [Christchurch earthquake] “rebuild companies” that Mr Clancy currently directs: Hanguk Business Investments One Ltd (formerly called Global Renovations Canterbury Ltd), which according to its creditors owes thousands of dollars, and Global Renovations Ltd. The latter is referred to in the report as belonging to a group of about 30 companies Clancy directs, and is also involved in the “building house construction” industry.
John Clancy: Source https://nz.linkedin.com/pub/john-clancy/2b/851/941
Claims to be “Owner, Global Group Holding NZ Ltd”
A number of creditors – subcontractors and suppliers – are reported to be worried that the companies appears to have abandoned Christchurch and Clancy cannot be found or contacted. The accountant acting for all Clancy’s companies, Ponsonby/Auckland-based Richard Somerville of Walker Townsend Limited is reported as saying that he believes Clancy is overseas.
All these companies have a registered office address and service address listed on Companies Office records as Walker Townsend Ltd, Level 5, 64 Khyber Pass Rd, Grafton, Auckland, 1023, New Zealand. Richard Somerville, as “trustee shareholder” of companies Clancy directs, records his address as his office address at 64 Kyber Pass Rd (as above).
What Stuff News does not report:
- Mr Clancy has been in breach of the Companies Act 1993 for many years for failing to record his residential address correctly in Annual Returns and other documents filed with the Registrar of Companies. Companies Office records show that he resides at 64 Kyber Pass Rd, Auckland 1023, but this is not correct. This address is a non-residential property and is in fact the address of the offices of the company’s accountant Richard Somerville.
- Mr Clancy has breached the Act by providing a false residential address as a shareholder of companies he directs. Neither 64 Khyber Pass Road, Grafton, Auckland, 1023, New Zealand or 91 Kingsley Street, Sydenham, Christchurch, 8023 , New Zealand, which he uses on Companies Office records, are residential addresses.
- Section 2 (part 5) of the Companies Act 1993 makes it clear that the address of a legal person who is a director and/or shareholder of a company must be recorded as his/her residential address (the address where he/she normally resides).
FJ40 Trustees Ltd, together with individual shareholder John [Edward] Clancy, is the joint owner of Global Renovations Canterbury. This ownership structure of FJ40 Trustees is that of a family trust (Note: trusts cannot by law be named as a shareholder in Company Office public records as they are not a “legal person”) with Clancy as its sole trustee (ALL trustees of a Trust, by law, must be named on Company Office public records).
FJ40 Trustees is registered with IRD as a business operating as a “trustee service” and it was set up by Clancy’s accountant Richard Somerville. Somerville holds the only share in the company FJ40 Services, holding it on behalf of an unnamed beneficiary or beneficiaries (all beneficiaries would have to be named in the Trust Deed between FJ40 Trust and FJ40 Trustees).
The Stuff report refers to FJ40 Trustee as “Clancy’s trustee company”. It states:
“Property records show Clancy and his trustee company, FJ40 Trustees Ltd, bought a 2 hectare lifestyle property in Clarkville in North Canterbury last year for $847,000. It is on the market.” [Emphasis added]
Creditors of Mr Clancey’s companies, including the IRD, will no doubt be seeking more information from Mr Somerville as to his relationship with the companies Mr Clancy directs and the nature of Mr Clancy’s relationship to the Trustee company and its “owner”/beneficiaries.
Debts pile up as company director can’t be found”. Story by Martin Van Baynen. Published 18 July 2015.
Companies Office website: www.companies.govt.nz