Mainzeal Directors Dodging Their Responsibilities

Rt Hon Winston Peters
Author: 
Rt Hon Winston Peters
Date: 
Thursday, February 7, 2013 - 13:45

New Zealand First says the directors who resigned from Mainzeal on Tuesday are hiding behind the law so they don’t have to explain their part in the company’s liquidation.

Rt Hon Winston Peters says it appears the former directors will not be held accountable for the damage they caused given the current laws, and they probably never will.

“It is one more example that the laws in this country are written to protect directors, not the investors and workers.”

Mr Peters says the liquidation of the country’s third largest construction company also begs the question of how the chairperson of the Financial Services Council also happened to be the person who was the independent chairperson of Mainzeal.

“What happened here is a man called Yan made appointments based on political decisions instead of on commercial realities.

“You have to look at who Mr Yan appointed to these well-paying directorships.

“But you also have to consider the fact that Mr Yan paid himself more than $1 million a year despite the company having equity of only $68 million,” says Mr Peters.