Court: Ex-New Zealand PM Shipley to pay over US$3m in damages for company collapse

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MOSCOW: Former New Zealand Prime Minister Jenny Shipley (pix) will have to pay compensation of 6.6 million New Zealand dollars (US$3.9 million) plus i...

will have to pay compensation of 6.6 million New Zealand dollars plus interest for the collapse of the Mainzeal construction company, which she co-chaired until 2013, the New Zealand Supreme Court ruled on Friday.

“We order the directors to contribute to the assets of Mainzeal $39.8 million together with interest at prescribed rates since 28 February 2013 with the liabilities of Dame Jennifer Shipley and Messrs Tilby and Gomm each limited to US$6.6 million and interest,“ the ruling read, reported Sputnik. Shipley served as prime minister of New Zealand from 1997 to 1999 and was the first woman to hold the post. After that, she served on the board of Mainzeal, which went into liquidation in 2013 following years of financial difficulties. According to the ruling, Shipley and other directors created a risk of serious losses for creditors.

The ruling comes after long-running litigation between the liquidators of the collapsed enterprise and four of its directors, including Shipley. -

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