New Zealand Financial Markets Authority warns Evco Pacific and directors over undisclosed NZD 2.8 million share sale by its parent

The New Zealand Financial Markets Authority issued a warning to Evco Pacific Limited and its current director, Neville Montefiore, and former directors Roger MacDonald and Christopher Nathan for failing to meet disclosure obligations under the Financial Markets Conduct Act 2013 in connection with a sale of EVCO shares by its parent company. The regulator also made an order requiring the warning to be disclosed on EVCO’s website and in any restricted communications by or on behalf of EVCO, the directors, or associated persons. In the FMA’s view, the offer for sale was made between 27 November 2017 and 26 March 2019 without EVCO or its directors preparing and lodging a product disclosure statement with the Registrar of Companies, as required under Part 3 of the Act. EVCO International Limited on-sold about 16% of EVCO to 32 investors in New Zealand and Australia for approximately NZD 2.8 million. The FMA also considers EVCO and the directors to have breached the Companies Act 1993 by failing to register share transfers, maintain a share register, and call or hold shareholders’ meetings. The section 49 order requires the warning statement to be displayed prominently in a prescribed format and to be provided to each associated person, with non-compliance constituting an offence punishable by a fine of up to NZD 300,000. The order remains in effect for the lesser of five years from the date of the order or until it is cancelled by the FMA.