Chinese man Xiang Yang Chen borrowed $1 million from an offshoot of Canadian-based investment company Pacrim to settle in New Zealand.

Shipley is one of the Canadian company's directors and oversees its New Zealand company, PIC.

Chen originally gained approval in principal for residency a year ago on the basis he would invest $1m in New Zealand government stocks.

But once he arrived, the New Zealand Immigration Service indicated it would refuse his application and revoke his work permit because PIC's scheme did not meet business immigration policy.

Chen sought a judicial review but Justice Wild agreed with the immigration service and rejected his review.

In his findings released last week, Wild said PIC controlled the $1m rather than Chen. Under immigration policies, the immigrant must control the investment.

Shipley said yesterday the company wanted the courts to clarify why the scheme failed to meet immigration policy.

The company was committed to complying with the rules and would attempt to make changes to do so, she said.

"I guess there is a dispute over the interpretation (of immigration policy). This gives us a very clear steer."

Shipley said the company had several hundred immigrants eager to gain New Zealand residency under its scheme but were in a similar situation to Chen. Other companies and lawyers were also involved in helping immigrants enter New Zealand under the business immigration policy.

She believed about 4000 immigrants were in limbo over the policy.

Pacrim's scheme had operated successfully in Canada for about 10 years, she said.

Immigration Minister Lianne Dalziel welcomed the high court decision, saying it confirmed the scheme did not meet government policies.

-Sunday Star Times