PLS help for Blue Chip investors

PROPERTY Law Section members have joined chartered accountants in offering an hour’s free legal advice to assist people who have lost money through the collapse of the Blue Chip group
of property investment companies.

The Companies Office and the New Zealand Institute of Chartered Accountants set up the freephone line and service in April and, at the end of May, the Minister of Commerce, Lianne Dalziel, invited lawyers, through the NZLS, to consider taking part as well.

The Property Law Section invited members to do so and received a ready response at short notice. A list of the lawyers prepared to take part has been supplied to the Companies Office (though more names can be added as others volunteer).

The freephone line is available to investors of any Blue Chip company that is in liquidation, and particularly to those people who are in serious financial straits and in need of immediate advice.

The Companies Office receives calls on the freephone line – 0508 197 510 during office hours – and matches the caller with a lawyer or an accountant, as required, in their locality. The caller’s details are provided to the lawyer, who is expected to respond within 48 hours.

Any commercial arrangement beyond the hour of free advice is by agreement between the investor and the lawyer or accountant.

In a media release on 4 June, Lianne Dalziel welcomed lawyers’ participation.

"I’m delighted by this generous offer. It is pleasing to see another group of professionals step up to help people start along the road to recovery following disastrous financial losses due to the Blue Chip debacle," Lianne Dalziel said.

"Blue Chip is like nothing I’ve ever seen before. It used a multi-layered, intricate and complex set of arrangements and it’s going to take some time to untangle. The behaviour of some people connected with Blue Chip is coming under scrutiny so it’s good to see professional bodies taking action to restore public confidence."

The NZLS issued a corresponding media release. In it, PLS Chair Chris Moore commented on members being quick to volunteer their services while NZLS President John Marshall QC spoke of it being a matter of access to legal advice.

"When asked, members were quick to put their hands up. A lot of New Zealanders have been hit hard with investment losses in the last year or so, but the Blue Chip situation is particularly complex and we feel it is important that people can get some initial advice about their legal situation promptly," Chris Moore said.

"Lawyers are very concerned that people who need legal advice are able to get it and, in the case of the Blue Chip investors, we want to help them by giving the initial advice free of charge," John Marshall said.