The Mainzeal High Court decision has attracted attention from the governance community and is a timely reminder for all governance professionals to be cognisant of their responsibilities as guardians of good governance.
The Mainzeal High Court decision is based on directors’ duties regarding insolvent and reckless trading, and has identified breaches of the Companies Act 1993 by the Mainzeal directors.
From a legal perspective, there are lessons for current and future directors, focusing on Sections 135 and 136 of the Act .
From a governance perspective, the decision raised a number of significant issues, focusing on the board of director processes:
Good governance focusses on the above; poor governance fails to address these issues.
Governance New Zealand actively promotes good governance practices which focus on the above, whereas poor governance demonstrates a failure to address these issues. Being a well-trained qualified governance professional has never been more important. For more information about our professional education programme visit the Governance New Zealand website.