Directors of Dominion Finance Group Ltd & subsidiary North South Finance Ltd have reached a $10.235 million settlement with liquidators, receivers and the Financial Markets Authority.
The sum, to be distributed to investors, means the authority will discontinue its civil claim against the directors for failing to perform their roles as directors and not taking adequate steps to ensure they were aware of the company’s true position.
The directors were Terry Butler, who died 2 years ago, his wife Ann Butler, Barry Whale, Rick Bettle, Paul Forsyth & Vance Arkinstall.
The Financial Markets Authority’s civil claim was stayed in 2010 pending the outcome of the criminal proceedings against the directors, who, apart from Mr Butler, were sentenced in 2013 and received varying sentences of home detention, community work and reparation payments of between $50-300,000.
Dominion Finance Group owed 5937 debentureholders $177 million and wholesale lenders were owed another $55 million when it went into receivership in 2008. North South owed debentureholders $31 million and wholesale lenders $15 million when it went into receivership in 2010.
18 August 2013: 3 more Dominion Finance directors get home detention
Attribution: FMA release.