The Society which commenced research last year into four NZ registered companies – wholly owned at the time by a Florida-registered corporation – and all with links to the funding of the NZ pornography industry – discovered major issues of non-compliance and passed its concerns on to the Companies Office. As the Society accurately predicted – The National Enforcement Unit of the Companies Office has failed to make any direct contact with the sole company director since then, despite the fact that its mail has been sent to all of the director’s known addresses registered with the Companies Office. That director faces eight criminal charges in the Auckland District Court later this month relating to the four companies he directs. Several days after the publication of the Society’s December 2009 newsletter reporting on some of its concerns regarding the four companies, the US-based director transferred the ownership of all the four companies shares from the Florida-registerd corporation into to his own name.
John Mills, Society President and a Company Director himself, says: “The Society is fully in favour of the proposed changes to the Companies Act signalled by the Minister of Commerce, Hon. Simon Power. Its concerns raised with the Companies Office over non-compliance involving four other companies in liquidation involving one other director, led to that director receiving a four-year banning order imposed by the NEU. Non-compliance by directors on basic matters such as their true and accurate residential addresses, their correct registered office addresses etc, are often symptomatic of offending and and/or failures in other areas” Mills said. “Community standards must be upheld for the public good”, Mills added.