He was censured for drawing fees as a trustee for three months after he had been replaced as a trustee, non-compliance of record keeping and failing to act with co-trustees, in an unnamed estate’s administration.
Mr Butterfield (78), a former chairman of the South Canterbury District Health Board for nine years, was honoured with a New Zealand Order of Merit for services to business and community in 2013. He also features in the Timaru District Council’s Hall of Fame, as recognition for his yachting-related achievements.
In March 2015, Mr Butterfield was replaced by then health minister Dr Jonathan Coleman as chairman of the Southern District Health Board, a role he held from 2010.
When Mr Butterfield was contacted yesterday, he said he would not be appealing the tribunal’s decision and he had ‘‘no further comment to make’’.
In the decision from the institute’s disciplinary tribunal, released last month, the four-person Wellington-based tribunal said Mr Butterfield accepted he did not carry out the engagements to the standard expected of a chartered accountant, acting as a professional trustee.
The decision said it had been taken into account that Mr Butterfield was no longer in public practice nor doing any accounting work.
In its finding, the tribunal said it had been advised Mr Butterfield continued to be a co-trustee of six trusts, and ordered copies of its decision be sent to those co-trustees; to which Mr Butterfield made no objection.
The complaints against Mr Butterfield were laid by an unnamed male and female, for whom he had acted as accountant and as trustee or executor of their estates.
He had failed to act unanimously with co-trustees in administering an estate, nor had he complied with trust deed provisions over record keeping and his payment of remuneration.
‘‘The member [Mr Butterfield] continued to act as though he was a trustee of that trust and to draw fees for his professional services for approximately three months after he had been replaced as a trustee,’’ the decision said.
He had been replaced as trustee on September 16, 2016.
On the charge of ‘‘conduct unbecoming’’ an accountant, the decision said Mr Butterfield accepted he did not address perceived conflicts of interests, or ‘‘threats to his objectivity’’, and his failures ‘‘represent a significant oversight and breach’’ of the institute’s code of conduct.
Mr Butterfield, who the institute described as having a ‘‘previously unblemished record over a number of decades’’, was ordered to pay the institute a penalty of $4000.
A costs order against Mr Butterfield was made for $23,913, but he sought to have that reduced to $15,000 and queried the charge-out rate.
However, the tribunal found the costs order was ‘‘fair and reasonable’’, and ordered Mr Butterfield pay $23,900.
The tribunal said it had no issue suppressing the complainants’ names and those of Mr Butterfield’s clients, but it wanted to name the company for which he was a director or consultant during the relevant period.
His conduct occurred ‘‘within the environment of that firm’’, the decision said.
However, Mr Butterfield requested name suppression of the firm, pleading if there was to be criticism of the firm, it should have the opportunity to be heard, also saying where he worked at the time ‘‘is of little moment’’.
The decision said given no complaint was laid against the firm, it would follow general practice and suppressed the firm’s name.
