Christchurch-based company Trinity Employment Services remains under investigation after the release of a six-monthly liquidation report revealed ongoing concerns about possible breaches of the Companies Act.
The company, run by Cassandra Knox, was placed into liquidation on 30 May 2024, with the Official Assignee appointed as liquidator.
Knox had earlier pleaded guilty to tax evasion charges linked to her second recruitment agency, though she challenged the extent of the personal gain attributed to her.
According to the latest report, several matters remain unresolved, including a significant overdrawn shareholder current account and potential company law breaches.
The report, dated 25 June, confirmed that demands have been made to the company’s shareholder to repay the overdrawn account, which totals more than $228,000. Recovery options are still under review.
The liquidator is also considering referring the matter to the Ministry of Business, Innovation and Employment’s (MBIE) Integrity and Enforcement Team in relation to potential offences under the Companies Act 1993.
Cassandra Knox
All plant and equipment, along with company vehicles, have been collected and sold, with the proceeds received. Outstanding invoices have been paid, and all lease agreements reviewed and disclaimed.
Despite this, the liquidation process is not yet complete. The liquidator said it remains difficult to estimate when the process will be finalised, primarily due to the unresolved shareholder debt.
The company has received total funds of $78,939.37 since the commencement of liquidation, with payments totalling $62,664.20. This leaves a current balance of $16,275.17.
Preferential creditors, including former employees, have received a full payout on their claims.
However, unsecured creditors, including Inland Revenue which is owed more than $1.5 million, have yet to receive any distribution. The report lists several Christchurch and national businesses among the unsecured creditors.
The liquidator’s report also includes a list of known and potential creditors, both preferential and unsecured, as well as details of the company’s assets and liabilities. No secured creditors have been identified.
