Notice Type
General Notices
Notice Title

Notice of Decision of the Disciplinary Tribunal

of the Institute of Chartered Accountants of
New Zealand (Member Guilty of Conduct Unbecoming an Accountant, Being Adjudicated Bankrupt, and Breaching the Institute’s Rules
and Code of Ethics)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held in public on the 7th day of December 2005, which the member elected not
to attend and was not represented by counsel, the tribunal found Michael Stuart Henderson, of Auckland (formerly of Tauranga), guilty of the following charges and the following particulars proven.
Charges
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the rules made thereunder, and in particular Rule 21.30, the member is guilty of:
(1) conduct unbecoming an accountant and/or
(2) being adjudicated bankrupt within the last three years; and/or
(3) breaching the institute’s rules, specifically Appendix 1 and/or the Code of Ethics updated in June 2003, specifically Rule 2.
Particulars
IN THAT being a member of the Institute of Chartered Accountants of New Zealand, the member:
(a) entered into a sale and purchase agreement with
at least one party, in regard to property, in which
the deposit cheque that he paid was subsequently dishonoured; and/or
(b) misled the recipient or recipients of his cheques as to the reason for their being dishonoured and/or the reason that he intended to purchase the property; and/or
(c) presented numerous cheques to various parties that were subsequently dishonoured; and/or
(d) was adjudicated bankrupt in the Tauranga High Court on the 22nd day of April 2005; and/or
(e) included a property purchase as a taxable expense
on his goods and services tax return filed with
the Inland Revenue Department, when he should reasonably have known that the funds were not available for settlement of this purchase; and/or
(f) included a property purchase as a taxable expense
on his goods and services tax return filed with
the Inland Revenue Department, when he should reasonably have known that this was a private residence and not a deductible expense; and/or
(g) had not completed the minimum number of hours of continuous professional development as required in Appendix 1 of the Rules of the Institute.
Reasons
The evidence showed erratic behaviour by the member; signing contracts, entering into sale and purchase agreements, signing cheques for substantial amounts of money which have subsequently been dishonoured and
with no obvious means of covering payment. The member was declared bankrupt in April 2005.
Orders of the Tribunal
(a) Pursuant to Rule 21.31 (a) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that the name of Michael Stuart Henderson be removed from the institute’s Register of members.
(b) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Michael Stuart Henderson pay to the institute the sum of $3,243.00 (inclusive of G.S.T.) in respect of the costs and expenses of the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal directed that the decision of the tribunal be published in the Chartered Accountants Journal, the
New Zealand Gazette and the Bay of Plenty Times with mention of the member’s name and locality.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to the member of the exercise of its powers, appeal in writing to the appeals council of the institute against
the decision.
No decision other than the direction as to publicity shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 14th day of December 2005.
R. J. O. HOARE, Tribunal Chairman.
Important Notice: New Zealand Institute of Chartered Accountants is the operating name of the Institute of Chartered Accountants of New Zealand.