Bridgecorp Directors Banned

Press Release

Bridgecorp Directors Banned

4 June 2009

The Deputy Registrar of Companies Peter Barker has prohibited Rodney Michael Petricevic and Cornelius Robert Roest, directors of the Bridgecorp Group of companies, from directing or managing a company in New Zealand.

Under section 385 of the Companies Act, where a person has been a director of more than one failed company within 5 years, that person must satisfy the Registrar that their management of the companies’ affairs was not, at least partly, responsible for the companies’ demise.

Mr Petricevic and Mr Roest were unable to satisfy Mr Barker that the way in which they managed the affairs of the Bridgecorp Group was not at least partly responsible for the failure of those companies.

The Ministry of Economic Development’s National Enforcement Unit provided reports to the Registrar of Companies that alleged mismanagement including: misleading information contained in the prospectus; defaults of the payment of principal and interest; misleading information provided to the Trustee; and, in the case of Mr Petricevic, transactions involving personal interest.

Mr Barker found the failings of Mr Petricevic and Mr Roest to be ``serious and fundamental’’ with such a depth that any one of the matters alone would have been enough to prohibit them from acting as company managers or directors.

The Deputy Registrar determined that this matter is separate and distinct from the criminal charges that Mr Petricevic and Mr Roest are also facing, so there was no reason for him to delay his prohibition decisions. Mr Barker does record in his minutes of decision, however, that nothing in his decisions alters any arguments made by Mr Petricevic or Mr Roest in any other proceedings.

The prohibition notices were issued on 29 May 2009. Mr Petricevic and Mr Roest are each prohibited for five years from this date.

Prohibition

The maximum term of prohibition under Section 385(3) of the Companies Act 1993 is five years. The prohibition prevents those concerned from acting as directors or promoters of a company, or being concerned in, or taking part, whether directly or indirectly, in the management of a company.

Penalty

Failure to comply with the notice of prohibition is an offence and persons are liable upon conviction to a penalty of up to 5 years imprisonment or a fine not exceeding $200,000.

ENDS

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