Perpetual challenges FMA raids...with your money

While you read the following article by Niko Kloeten on Good Returns remember that Perpetual/Pyne Gould uses company money and therefore essentially shareholder money to protect that what has now become the farsical behaviour of its directors.

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Perpetual challenges FMA raids

Perpetual Trust has taken the Financial Markets Authority to court over searches of companies associated with Pyne Gould Corporation, as part of an investigation into related-party loans.

 

The FMA revealed last month that it was investigating Perpetual, a subsidiary of PGC, over a $28 million loan facility to the Torchlight Fund, which is run by PGC boss George Kerr.

Perpetual has taken a judicial review proceeding against the FMA, which it claims over-stepped its powers when it executed a search of PGC-related companies in April.

In a case that began yesterday in the High Court at Auckland, Perpetual is seeking to have Justice Paul Heath declare the raids were unlawful. 

It has taken issue with both the form of the notice issued under Section 25 under the FMA Act and the amount of time the companies involved were given to comply. 

Read the complete article here