|
A shame that it is coming to this:
PRESS RELEASE
For immediate release
V8 Directors issue proceedings against former Directors
The current Directors of NZ Vee Eight Entrants Group Association Limited (VEEGA) have today confirmed that legal proceedings have been issued against the former Directors of the company who are now Directors and shareholders of the rival V8 Supertourers Limited company.
VEEGA is the holding company of NZ V8’s Limited the company that has successfully run the NZ V8 racing Championship, the premier category of MotorSport NZ Inc’s Championship series, for more than 10 years. The category has developed a huge following in New Zealand in that time and attracted significant television and sponsorship support.
The proceedings relate to the actions of the former Directors in their dealings with the development of the category’s Car of the Future, the development plan to modernise the fleet of competing cars in the Championship.
The development work for this car was undertaken by a working group comprising some of the former Directors who are now the Directors and also shareholders in the Supertourer category (a rival series) due to commence shortly.
Chairman of the Board of VEEGA, prominent businessman and sporting identity Ian (Inky) Tulloch said, “The current Directors had no option but to take these proceedings against the former Directors. In the Board’s view, the actions of the former directors have damaged the category, their former competitors and shareholders and potentially motor sport in New Zealand.”
“In all my years in business seldom have I seen such conduct in a commercial deal and certainly never in a sporting arena where so many invest so much just for their passion for the sport”, he said.
The action, which will be set down for hearing in the High Court in Auckland alleges that the former Directors breached their responsibilities to VEEGA and its shareholders in the way that they dealt with the confidential design and development work for the new car, including using shareholders’ funds to design the prototype. The action seeks, by way of relief, orders for damages and an order that the newly created Supertourer company, account for profits received arising as a result of the former directors’ breaches.
Ends
|