- Kingsland Directors Do It Again! AGM called in Violation of Company’s Act
- (this post) Suspicions Confirmed: No Audited Financials filed for Classic
- Kingsland Directors Persist - Meeting Held in Violation of Companies Act]
A visit to the Corporate Registry on the past Friday, 27th June 2008, revealed two outrages. Not only is Kingsland file still missing, but in addition Classic has not filed the comparative financial statements required by law. This means that both Kingsland Estates Limited and the company that bought most of its shares, Classic Investments Limited, are apparently operating in blatant violation of the Companies Act. On examination, the contents of the Classic file imply that Kingsland is giving extremely favourable treatment to Classic at the expense of its other shareholders. Both companies are defendants in the Canadian Action.
28,570 shares secures $10.5 million loan from FCIB!
If I walked into a US bank for a loan, one of the first things the bank manager would ask for is my income tax return. If I told him, “Oh, well I have never actually filed an income tax return!“, I am sure that after the manager stopped laughing, I would be shown the door. The manager would think that I was headed for a jail term for tax evasion like Wesley Snipes.
Classic Investments Limited secured over $22 million in loans from the FirstCaribbean International Bank (FCIB) without having any financial statements in the Corporate Registry! FCIB is also a defendant in the Canadian Action. What is going on?
It is notable that Mrs. Knox was offered $0.86 million yet here is $10.5 million in loans secured by the same number of shares that she owned. (At a later date, it appears that additional shares were encumbered by this same loan.)
Kingsland Gives Classic Yet Another Sweet Deal!
This link (pdf) describes the additional 147,612 shares. This comprises the 28,570 shares each of 5 shareholders (142,850), plus a special issue of 4,762 shares. These shares were issued to Classic by Kingsland two months before the Privy Council decision. The value of $52.50 was mysteriously arrived at in the absence of financial figures. This valuation was made by a board of directors whose chairman stated that shareholder Madge Knox was not entitled to figures, and whose company was in violation of the Companies Act. (The Government of Barbados has consistently ignored these blatant violations.) Existing shareholder, Madge Knox was deliberately prohibited from buying the shares at this low price. This was another sweet deal solely for the benefit of “desirable” Classic, which also had no financial statements!
Irregularity in the Transfer of the Shares in Colin Deane’s Estate
Having accounted for the 147,612 shares, the remaining 28,570 would have to be from the estate of Colin Deane. Marjorie (Madge) Knox was a beneficiary of this will which was never settled.
Iain Deane was the executor of the will. On the 3rd of August, 1982, Iain Deane swore that within twelve months he would “distribute the rest of his estate according to law”. This is 2008. Madge Knox never received her inheritance!
The question is, how was the ownership of the shares named in this will transferred to Classic without the other beneficiary, Madge Knox, receiving what was willed to her? How could the executor himself benefit from a will, and not discharge his duties to another beneficiary? A case was brought against the executor, Iain Deane, but the judge ruled in favour of Iain Deane and against Madge Knox! She even awarded Iain costs! All beneficiaries of wills in Barbados are potentially at risk from this court decision which implies that some beneficiaries may be unable to get what was willed to them! (On the other hand, it could be a wonderful opportunity for unscrupulous executors.)
Recorded Loans on Kingsland land exceed sales price!
Talk about buying land with “nothing down”! This is in contrast to Cox’s “staying power” warning! The $10.5 million loan from FCIB was followed by an $11.6 million loan secured by Kingsland’s real estate. This $22.1 million exceeded the recommended offer of $6 million for the shares, and the assumption of a maximum of $11 million in debt, a debt that some insiders thought would be forgiven!
The Government of Barbados is invited to answer these questions in the context of this situation:
- Why are these companies allowed to continue to operate in violation of the Companies Act?
- Are these companies receiving preferential treatment because of the influence of persons in positions of high authority?
- Does the “Rule of Law” apply in Barbados?
Documents from Classic File (all are large pdf files):
- $10,5 million loan on 28,570 shares
- $10.5 million loan on additional 147,612 shares
- $11.6 million loan on Kingsland Real Estate
Disclaimer: We wish to remind our readers that while we quote public court documents, the contents of these documents should be taken as unproven allegations. What we state here is our opinion. I am not a lawyer. On the other hand, we welcome and value comments. Under the circumstances, anonymous comments are most welcome. Please follow these guidelines:
- Please refrain from making defamatory or libelous statements like calling people frauds or liars. It is acceptable to present proof and to state that someone has lied. It is not acceptable to call someone a liar.
- Please try to be brief. If it can’t fit on one page it is probably too long.
- Prime Minister Owen Arthur Can Prove His Innocence In The Cheque Affair With The Help Of His Bank Manager At FCIB - (Arthur is also a defendant in the Canadian Action)
- FCIB Board of Directors
- Iain Deane’s Reply