Du Val founders will continue to have assets frozen and passports held by court

Kenyon Clarke, one of the founders of Du Val. Photo / Supplied

By Rowan Quinn of RNZ

The founders of the collapsed Du Val companies will continue to have their assets frozen and their passports held by the court, the High Court has ruled.

Du Val is in statutory management, owing more than $300 million, and its main owners, Charlotte and Kenyon Clarke, are in receivership, with a preservation order on their assets.

The Financial Markets Authority (FMA) obtained the interim order last August and the couple fought back against that at a hearing last month but the court has agreed with the FMA.

In laying out the background to her decision, Justice Jane Anderson said the High Court had the ability under the Financial Markets Conduct Act to make a range of protective orders for the benefit of “aggrieved persons”.

“These are individuals or entities who may have suffered harm or loss as a result of certain conduct that is under investigation by the FMA,” she said.

She noted the FMA’s orders were opposed by the Clarkes but ruled they should continue until further order of the court.

The decision also upholds the receivership and the overseas travel ban placed on the couple.

Justice Anderson’s decision was heavily suppressed, mainly because of suppression orders that arose in hearing, some of which are under appeal.

Then, each side had argued different aspects of the arguments or preliminary evidence could prejudice later action if made public.

– RNZ