Written by Condon Associates on 18 July 2011

Most people in business quickly became aware of the impact that the “Sons of Gwalia” case had on the industry when it sought to turn shareholders, or at least a certain group of shareholders, into creditors within an external administration, and not a deferred group of creditors but equal to all creditors that had always been in that category.

It took a determined change to the statutes to ensure that this situation would be reversed into the future thus giving stability to the industry and the rightful return of the rights that creditors should have had, and in fact did have, in the first place.

If you buy shares you buy risk, if there is the remotest chance that information relating to your purchase should be relied upon then pay a professional to prove it. It’s basically automatic if you’re buying the entirety of the business.

Why the sudden interest?  Well it’s with a slight chuff that I read recently that one of our more notable winemakers lost their case seeking to achieve essentially the same result from a slightly different path. 

Creditors are creditors, and members are members and the simple distinction should be maintained otherwise the increasing winners will only be the advisors who are paid to squabble over the little that already remains.

PLEASE NOTE: All information contained in the articles below was correct at time of publishing.