A special general meeting of the Diocesan Car Fund Trust, held in Wellington on Thursday, approved the trustees’ recomendation to wind up the trust.
Around 60 people attended the meeting held in Connolly Hall to hear Trust Chairman, Brother Pat Lynch, Mr Michael Burrows, an independent lawyer from Burrows and Associates, and the Trust’s appointed administrator, Mr Mike Curtis of Curtis-McLean, speak about the various options the trustees faced.
In outlining five options to members, Burrows told the meeting that a GST error amounting to $602,222 meant the trust was insolvent and that technically the Trustees were liable for this.
Acknowledging the trust’s financial situation, Br Lynch told the meeting of his reluctance to become involved but did so only to transition the organisation into a properly functioning charitable company.
Lynch told the meeting it was only in preparing to form the company that the real seriousness of the situation became more clearly apparent.
Lynch said the trustees hoped to get a clear picture sooner, but were unable to, however, what was clear was membership was falling and the day-to-day administration of the trust was not robust.
Mr Curtis presented members with the financial statements for the year ended 31 March 2012.
In presenting three possible financial scenarios to members, Curtis said the Trustees had received four valuations for the vehicles, ranging from $4.5m – $5.5m.
In his presentation, Curtis informed members their loans are unsecured. He proposed that members contribute to the Diocesan Car Fund Trust’s shortfall in proportion to their loans. He told the meeting that once the value of each vehicle is established, members can expect the administrator to contact them to negotiate a settlement.
Currently four vehicles remain unpaid for and members are asked to continue to pay their monthly levies.
Curtis handed the members a fifteen point document outlining a range of issues including the windup process, member entitlements and an answer to what will happen to the cars members are driving.
The meeting also agreed that a ‘committee of inspection’ be formed to assist the administrator in the liquidation.
As well as individual Wellington Diocesan clergy, representatives from the Anglican Diocese of Wellington, The Anglican Diocese of Taranaki, other Catholic dioceses and diocesan organisation, and religious orders from throughout New Zealand are looking to lose considerable sums.
Mr Dave Mullin representing the Archdiocese of Wellington wanted reassurance from the trustees that the Archdiocese’s good name would not be tarnished by the liquidation and bad name of the Diocesan Car Fund. “They were often seen as the same thing,” he told the meeting.
Speaking from the floor, towards the end of the meeting, Monsignor John Carde thanked all those who were involved in the running of the Diocesan Car Fund Trust, saying that it had been a wonderful service to the Church for many years, and had been a loyal sponsor of many Church organisations and events.
Mr Ray Lindsay, General Manager of the Diocesan Car Fund Trust was also at the meeting. During afternoon tea he invited some members to use his services in a new venture, the Inter-Faith Fleet Management Company which he is looking to establish.