Directors beware

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.

4 Responses to Directors beware

  1. Andrei says:

    It’s also a warning to shareholders that people who’ve run the country might not necessarily have the skills to run a company.

    They might not have had the skills to run the country either – I’ll say no more.

    Like

  2. pmofnz says:

    With the much touted ‘you must be regulated’ to be a licensed/registered practitioner of your art or craft such as a teacher, sparkie, plumber, drainlayer and soon to be hammer hand, one wonders when these ‘corporate leaders’ might have to be similarly licensed.

    Or for the ultimate practitioners of dark arts of spin, a registration and licensing system with bite should they cock up, for the lying thieving charlatans that pose as the political leaders of our country.

    Like

  3. Denny says:

    Also a warning to voters that those people with skills to run a company may not have skills to run a country …

    Like

  4. Richard says:

    “Trophy Directors” they are called. Recruited because of their name rather than expertise as a Director; they are paid very well. Tipene O’Regan is an example; Director of Hanover Finance head of the audit committee. HF currently under investigation. by the SFO.

    Like

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