Judge Nathan Milner dismissed an application in the Māori Land Court by Mangatu Blocks Incorporation shareholders calling for an investigation into the entity’s multimillion-dollar overseas investment loss. Photo / Anne-Marie de Bruin
Judge Nathan Milner dismissed an application in the Māori Land Court by Mangatu Blocks Incorporation shareholders calling for an investigation into the entity’s multimillion-dollar overseas investment loss. Photo / Anne-Marie de Bruin
A Māori Land Court judge has dismissed an application by Mangatu Blocks Incorporation shareholders calling for an investigation into the entity’s multimillion-dollar overseas investment loss.
Judge Nathan Milner, in a decision released this month, said the applicant had not “provided sufficient evidence that there is the required 10% shareholding supportto trigger the court’s jurisdiction to undertake an investigation of the incorporation”.
A spokesperson for shareholders making the application said they will appeal the decision.
Mangatu Blocks Incorporation is a Tairāwhiti-based Māori incorporation that “exists to be guardians of our ancestral lands and optimise resources to create a sustainable future for our people”, according to a statement in May from Mangatu committee of management chairman Alan Haronga.
The court application was made in Gisborne by shareholder Marise Lant, who said she represented more than 300 others.
A hearing was convened on May 2 in Gisborne.
Lant, on behalf of the group of shareholders, sought a court determination to investigate the affairs of the incorporation and its committee of management after the liquidation of North American Lamb Company (Nalco).
Mangatu is the majority shareholder in Integrated Foods Ltd and, therefore, the group.
“The failed Nalco venture and subsequent liquidation is one of the major concerns of the shareholders that needs to be investigated, and was the catalyst that triggered matters for me,” Lant wrote in an affirmed affidavit in November last year.
Lant’s affidavit said it was understood shareholders representing more than 12% of holdings supported an investigation.
Judge Milner’s decision noted Mangatu Blocks Incorporation said its financial loss was $57.2 million, while the applicant said it was $86.7m.
Lant told the Gisborne Herald this week that the applicants intended to appeal the decision.
“This is a failure by the court in its discretion to act in the beneficial interest of the minority over a majority,” Lant said.
“Over 300 shareholders and protesters have provided full support and backing on this application, as there are injustices that have occurred within the management of our own incorporation in the millions [of dollars] and rising with legal fees.”
In May, Lant said the shareholders’ group she represented had lodged the application two years ago and worked on the matter for three years.
“It’s a shame while we debate in court minor technicality issues on threshold, what is ignored is the millions and millions of shareholders’ money that has been squandered and misused that was best used building homes for destitute beneficiaries living in their cars down at the local beach around the corner from the incorporation.”
Haronga, on behalf of Mangatu Blocks, declined to comment this week as the matter was still before the court.
He earlier told the Gisborne Herald in a written statement that Mangatu Blocks remained in a strong financial position, despite the challenges it faced.
“Over many decades, Mangatu Blocks have successfully diversified our interests across agribusiness, food processing, forestry and carbon sectors, which has enabled us to maintain a strong financial position despite the challenges faced during our investment in Canada. This has been reflected in increased dividend and grant distributions to our over 6000 shareholders,” Haronga said.
The Government was looking into changes to the Te Ture Whenua Māori Act 1993 this year, which could affect future Māori Land Court cases such as this.
These include a proposal to reduce the threshold shareholders needed to apply to the court to investigate their Māori incorporation from 10% to 5%, and a proposal enabling the court to investigate on its own with sufficient cause.
Māori Development Minister Tama Potaka. Photo / Mark Mitchell
Te Puni Kōkiri, the Ministry of Māori Development, said consultation was held earlier this year after the release of a discussion document by Māori Development Minister Tama Potaka.
Bernard Te Paa, Te Puni Kōkiri’s general manager policy wellbeing, said: “The consultation was to seek feedback from iwi, hapū, whānau and landowners on matters that could improve the workability of the law”.
Te Puni Kōkiri confirmed this week that no decisions had been made yet for either proposal.
