Allan Hubbard (New Zealand)
Encyclopedia
Allan James Hubbard, QSO
(23 March 1928 – 2 September 2011) was a businessman who lived in Timaru
in the South Island of New Zealand
and was the founder of South Canterbury Finance, New Zealand's largest locally owned finance company. In 2006, the New Zealand Listener described Hubbard as the most powerful businessman in the South Island.
Hubbard was listed on the New Zealand Listener Power List
from 2005 through to 2007 and then ranked on the Primary Sector list at number four in 2009.
Hubbard had significant interests in dairying, irrigation systems, finance and helicopters. He was one of three directors of Dairy Holdings Limited, which in 2007 owned 57 dairy units, and 10 grazing blocks in the South Island. In the 2006-07 season Dairy Holdings Limited milked 44,000 cows on 16,120 hectares and produced 14.3 million kg of milksolids.
Hubbard died as the result of a car crash on 2 September 2011.
On 31 August 2010, South Canterbury Finance asked its trustee to place it in receivership after negotiations over a recapitalisation deal failed. The Government immediately paid out investors $NZ1.6 billion under the Government's Retail Deposit Guarantee Scheme. Alan Hubbard was reported blaming the Government and the other South Canterbury Finance directors for the receivership: as the directors had sidelined him and the Government had placed him in statutory management.
placed Allan Hubbard, his wife Jean Hubbard and his business Aorangi Securities and seven charitable trusts into statutory management, with Trevor Thornton and Richard Simpson of Grant Thornton appointed as statutory managers. This decision was based on recommendations from the Securities Commission of New Zealand
after a complaint from an investor. Allan Hubbard established Aorangi Securities Limited in 1974. The directors are Allan and Margaret Hubbard and the share capital is owned by another Hubbard-owned company Forresters Nominee Company Limited. Aorangi had operated as a finance company, having raised $98 million from 407 investors living in Otago and Canterbury and making loans of approximately $134 million to borrowers. The review of the Securities Commission concluded that many of the loans were inadequately documented, appeared to be unsecured and contrary to instructions from investors. The Serious Fraud Office (New Zealand) initiated an investigation for fraud.
The news was met with disbelief in his home town of Timaru
and elsewhere in the South Island
, where Hubbard is seen as a pillar of the community. There was widespread support for Allan Hubbard and a rally was held for him on 26 June 2010 in Timaru attended by thousands of people who protested against the investigation.
In September 2010, two further companies, Hubbard Churcher Trust Management Ltd and Forresters Nominee Company Ltd were placed under statutory management. On 11 May 2011, Allan and Jean Hubbard filed judicial review proceedings in the Timaru High Court to challenge the decision to place them into statutory management.
On 9 September 2011, the Timaru District Court made an order permanently staying the prosecutions in light of Mr Hubbard's death.
Queen's Service Order
The Queen's Service Order was established by Queen Elizabeth II on 13 March 1975, awarded by the government of New Zealand "for valuable voluntary service to the community or meritorious and faithful services to the Crown or similar services within the public sector, whether in elected or...
(23 March 1928 – 2 September 2011) was a businessman who lived in Timaru
Timaru
TimaruUrban AreaPopulation:27,200Extent:Former Timaru City CouncilTerritorial AuthorityName:Timaru District CouncilPopulation:42,867 Land area:2,736.54 km² Mayor:Janie AnnearWebsite:...
in the South Island of New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
and was the founder of South Canterbury Finance, New Zealand's largest locally owned finance company. In 2006, the New Zealand Listener described Hubbard as the most powerful businessman in the South Island.
Hubbard was listed on the New Zealand Listener Power List
New Zealand Listener Power List
The New Zealand Listener Power List is a list of the most powerful people in New Zealand, compiled annually by the New Zealand Listener from 2004 to 2009. From 2004 to 2007, the list covered the 50 most powerful people without separating them by field...
from 2005 through to 2007 and then ranked on the Primary Sector list at number four in 2009.
Hubbard had significant interests in dairying, irrigation systems, finance and helicopters. He was one of three directors of Dairy Holdings Limited, which in 2007 owned 57 dairy units, and 10 grazing blocks in the South Island. In the 2006-07 season Dairy Holdings Limited milked 44,000 cows on 16,120 hectares and produced 14.3 million kg of milksolids.
Hubbard died as the result of a car crash on 2 September 2011.
South Canterbury Finance
In 1926, South Canterbury Finance started as a finance company in Timaru. Allan Hubbard was considered the driving force behind the company's growth as it ultimately became the largest financial institution in the South Island.On 31 August 2010, South Canterbury Finance asked its trustee to place it in receivership after negotiations over a recapitalisation deal failed. The Government immediately paid out investors $NZ1.6 billion under the Government's Retail Deposit Guarantee Scheme. Alan Hubbard was reported blaming the Government and the other South Canterbury Finance directors for the receivership: as the directors had sidelined him and the Government had placed him in statutory management.
Statutory management
On 20 June 2010, the New Zealand GovernmentFifth National Government of New Zealand
The Fifth National Government of New Zealand is the current government of New Zealand. It is led by Prime Minister John Key.After the 2008 general election the National Party and its allies were able to form a government, taking over from Helen Clark's Fifth Labour Government. The National party...
placed Allan Hubbard, his wife Jean Hubbard and his business Aorangi Securities and seven charitable trusts into statutory management, with Trevor Thornton and Richard Simpson of Grant Thornton appointed as statutory managers. This decision was based on recommendations from the Securities Commission of New Zealand
Securities Commission of New Zealand
The Securities Commission was an independent Crown Entity of the government of New Zealand and the main regulator of investments. It was replaced on the 1 May 2011 by the Financial Markets Authority ....
after a complaint from an investor. Allan Hubbard established Aorangi Securities Limited in 1974. The directors are Allan and Margaret Hubbard and the share capital is owned by another Hubbard-owned company Forresters Nominee Company Limited. Aorangi had operated as a finance company, having raised $98 million from 407 investors living in Otago and Canterbury and making loans of approximately $134 million to borrowers. The review of the Securities Commission concluded that many of the loans were inadequately documented, appeared to be unsecured and contrary to instructions from investors. The Serious Fraud Office (New Zealand) initiated an investigation for fraud.
The news was met with disbelief in his home town of Timaru
Timaru
TimaruUrban AreaPopulation:27,200Extent:Former Timaru City CouncilTerritorial AuthorityName:Timaru District CouncilPopulation:42,867 Land area:2,736.54 km² Mayor:Janie AnnearWebsite:...
and elsewhere in the South Island
South Island
The South Island is the larger of the two major islands of New Zealand, the other being the more populous North Island. It is bordered to the north by Cook Strait, to the west by the Tasman Sea, to the south and east by the Pacific Ocean...
, where Hubbard is seen as a pillar of the community. There was widespread support for Allan Hubbard and a rally was held for him on 26 June 2010 in Timaru attended by thousands of people who protested against the investigation.
In September 2010, two further companies, Hubbard Churcher Trust Management Ltd and Forresters Nominee Company Ltd were placed under statutory management. On 11 May 2011, Allan and Jean Hubbard filed judicial review proceedings in the Timaru High Court to challenge the decision to place them into statutory management.
Serious Fraud Office investigation
On 20 June 2011, the Serious Fraud Office announced that it had laid fifty charges of alleged fraud under sections 220, 242 and 260 of the Crimes Act against Alan Hubbard in the Timaru District Court.On 9 September 2011, the Timaru District Court made an order permanently staying the prosecutions in light of Mr Hubbard's death.