Six former Hanover directors and promoters are being sued by the FMA for allegedly misleading or untrue statements made in company prospectuses. Photo /
Six former Hanover directors and promoters are being sued by the FMA for allegedly misleading or untrue statements made in company prospectuses. Photo /
Insurance firm AIG has labelled Hanover Group Holdings' court claim against it as "misconceived".
Hanover and AIG are in an insurance stoush involving a directors and officers liability (D&O) policy worth up to $20 million.
The dispute is over whether this policy - which Hanover took out with AIG -covers claims involving two 2007 prospectuses, one issued by Hanover Finance and the other by United Finance.
Six former Hanover directors and promoters are being sued by the Financial Markets Authority over allegedly misleading or untrue statements made in these prospectuses and the insurance policy would be used to cover costs for this case or any damages that could be payable.
Although Hanover insurance broker Grant Dawson told the court yesterday that in 2007 AIG intended to provide cover for all prospectuses Hanover issued, this was disputed this morning.
