A former Prime Minster's in court, defending her actions as a director of failed property company Mainzeal
A former Prime Minster's in court, defending her actions as a director of failed property company Mainzeal
15 October 2018
Dame Jenny Shipley is being cross-examined by lawyers for the company's creditors.
They argue the board should have pulled the pin on the company earlier, instead of letting it collapse when it owed more than a hundred million dollars to sub-contractors.
The plaintiff's lawyer Mark O'Brien is homing in on whether directors did enough to ensure millions of dollars of loans Mainzeal made to sister company MLG could be paid back.
He says the directors would have known Ronald Reagan's famous phrase: 'trust but verify'.
However, Dame Jenny says the directors were given firm assurances - and in her experience it's not necessary to get more than a written contract from a company under the same umbrella.
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