Investors reaction to Greg Muirs Public comments

Following the appearance on the TV3 Campbell Live show, of Greg Muir, Chairman and Independent director of Hanover Finance last night, investors have reacted with considerable caution. Although most investors appreciate the Directors promises to support the company, there is a strong believe that the Directors actually have a legal obligation to do so in any case.

Unfortunately Mr Muir’s claim that the company has been well managed is at direct odds with the facts and although “he would say that”, investors feel somewhat insulted by Mr Muir’s condescending acceptance of the companies boardroom practices.

To the contrary, a raft of information is coming forward to indicate there has been a very reckless investment policy in the boardroom that has exposed investor’s funds to an unreasonable level of risk.

As a consequence investors will require a very clear proposal in order for them to be comfortable to support a moratorium.

Legal counsel acting on behalf of EUFA member investors in Hanover are writing to the Trustees to explain the concerns and conditions of EUFA members to be considered as a forerunner to the formulation of Hanover’s moratorium proposal.

Given the precarious position the investors have been forced into, many of them insist that a very strict management program must be implemented, while there is a general acceptance that if the Directors are genuine they would have no reason not to support a well-supervised regime.

Due to the fact that the Commerce Commission is investigating the practices of Hanover it is fair to suggest that investors are entitled to take a cautious stand, to which most investors expect that the ongoing management of the company will include statutory supervision.

It is clear that the ultimate objective must be the full recovery of investor’s money and the survival of the Company, which in turn will protect the shareholders interest for the future; therefore EUFA intends to pursue an effective remedy to what is a very stressful situation for our members with vigour.