2007-2008 Maori L. Rev. 1 (2007-2008)

handle is hein.journals/maori2007 and id is 1 raw text is: February 2007

Waipiro A13 - investigation of loans
Ngarara West B3B
- Sale confirmed; change of status declined
Environment Court - consent to harvest forest
Prime Minister's speech from the throne and
members' replies
Ngati Mutunga Claims Settlement Act
Te Ture Whenua Maori Amendment Act
Question Time
Settlements - Landcorp properties
Truancy among Maori
Schools- funding
Foreshore & Seabed- legislative framework

Disclaimer: The information contained in this publication is
a summary only. You should seek professional advice before
taking any action in relation to matters dealt with in this
publication. No responsibility is accepted for any loss arising
from reliance on information in this publication.

Tom Bennion
PO Box 25433 Panama Street
Wellington, New Zealand
Phone (04) 473 5755
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Email mlr@bennion.co.nz
Associate Editors:
Darrin CassidyJames Maddock
Tom Bennion
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Wellington, New Zealand

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 CopyrightTom Bennion 2007
This issue may be cited as:
Maori LR Feb207
ISSN 1172-8434

Waipiro A13 Blocks Incorporation
2   Haig & Haig v Proprietors of Waipiro A 13 Incorporation
A 20040005895, Tairawhiti, 169 Gisborne MB 260, 21
3   December 2006, HarveyJ.
This was an investigation into the disputed validity of
two loans made by Mr William Haig to the incorporation
in 1988 and 1989. The loans were made as a cash injection
6   toward the incorporation, and towards the purchase of a
tractor for the farm on the property, which was Maori
freehold land. Despite numerous references to the loans
and to interest accumulating over time in ledgers and
AGM minutes, the incorporation had disputed that the
8   loans had existed, due to a lack of any written loan contract
or record of security taken.
There was also a question of validity raised that even if
the loan were repayable, Mr Haig was at the time of the
loan the chairman of the incorporation's board, which
caused a conflict of interest re s53 Maori Affairs Amendment
Act 1967.
On the existence of the loan

The court allowed that even though the trail of evidence
is not perfect, and that there is no evidence of a written
loan agreement nor has it been established that such a
contract was ever created in writing. For such sums -
$20,000 followed by $12,500 - apparently unsecured, this
omission seems extraordinary, that therefore: ...on the
balance of probabilities.., there is sufficient material before
the court to make a factual finding that the late William
Haig did loan $32,500 to the incorporation. It was considered
that there was sufficient evidence provided by successive
accounts ledger entries, and references found within the
incorporation's annual general meeting minutes, as well
asin witness testimonies. The ledgers showed that in 1988
the statements of account referred to a term liability of
$20,000 with the reference W T Haig, which reference
did not appear the previous year. By 1989 the reference
was for $32,500 in favour of W T Haig. There were also
numerous references throughout the 1990s about the loan
and discussion as to how best to repay it. Successive
annual books showed the accrual of interest at 5% per
annum, which witnesses testified had been the agreement.
The issue that the incorporation took in this case was
that, due to the absence of a written contract, they were
not liable to repay the loan and interest. In evidence,
witnesses for the incorporation also eventually agreed
with the testimony of the incorporation's accountant in
admitting that the loan had been made by Mr Haig.

M a-on Law Rev X*W

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