Yes and Yes. One would hope that criminal prosecution will be pending especially in light of this http://www.sharechat.co.nz/article/2...m-offshorehtml
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Yes and Yes. One would hope that criminal prosecution will be pending especially in light of this http://www.sharechat.co.nz/article/2...m-offshorehtml
If they paid out the money whilst being insolvent.... directors are liable.
52 Board may authorise distributions
(1)
The board of a company that is satisfied on reasonable grounds that the company will, immediately after the distribution, satisfy the solvency test may, subject to section 53 and the constitution of the company, authorise a distribution by the company at a time, and of an amount, and to any shareholders it thinks fit.
(2)The directors who vote in favour of a distribution must sign a certificate stating that, in their opinion, the company will, immediately after the distribution, satisfy the solvency test and the grounds for that opinion.
(5)Every director who fails to comply with subsection (2) commits an offence and is liable on conviction to the penalty set out in section 373(1).
But the penalties are pitiful
Penalty for failure to comply with Act
(1)
A person convicted of an offence against any of the following sections of this Act is liable to a fine not exceeding $5,000:
Even Insurance stocks are not safe. There are some risks in the insurance sector as well. In the long run only strong balance sheets firms will have sustainable business.
https://www.investopedia.com/ask/ans...nce-sector.asp
Harbour Asset Management ‘valuing’ CBL at 88 cents for the purpose of valuing their funds.
There rationale
https://www.harbourasset.co.nz/wp-co...te-1-March.pdf