38 people were prohibited from being directors of limited liability companies for a collective total of 209 years, during the year to 30 June 2017.
The Companies Office says those involved received the bans for their role in the failures and mismanagement of the companies they directed.
“Limited liability companies create an opportunity for people to open businesses and take risks, which are crucial in allowing New Zealanders to bring their innovative ideas to market," says Registrar of Companies Ross van der Schyff.
“When directors fail in their duties it can causes losses for creditors, create a level of distrust in the community, and jeopardise New Zealand’s reputation as a great place to do business…”
Section 385 of the Companies Act 1993 allows the Registrar to prohibit directors for a period of up to ten years, so they are unable to take advantage of the company’s limited liability status, or be involved in the management of a company.
“By prohibiting these people from being directors, the Registrar of Companies provides protection for the public from directors and managers of companies who have been unscrupulous, incompetent or irresponsible, and maintains the reputation of New Zealand,” says Mr van der Schyff.