Four directors of Lombard Finance have been found guilty of making untrue statements in the company’s offer documents.
Judge Robert Dobson said the Crown had proven beyond reasonable doubt aspects of four charges, including failure to properly disclose the company’s liquidity risks and deteriorating cash position.
They were found not guilty of distributing an advertisement that included an untrue statement by sending a letter t0 investors in March 2008.
There may be an appeal.
Two of the directors were former government ministers – Sir Douglas Graham and Bill Jeffries.
Whether or not there is and regardless of the outcome if there is, this case is a warning to all directors that they must understand what they are doing and the responsibilities of their role.
It’s also a warning to shareholders that people who’ve run the country might not necessarily have the skills to run a company.