Automatic prohibition on conviction
In addition to the power of prohibition by the Registrar or the FMA under section 385 [of the Companies Act 1993], a person is automatically prohibited from acting as a director or manager if they have been:
Convicted on indictment of any offence in connection with the promotion, formation or management of a company or
Convicted of:
An offence under sections 377 to 380 of the Companies Act 1993
An offence against section 58 of the Securities Act. or sections 51 or 61 of the Financial Markets Authority Act 2011.
Any crime involving dishonesty as defined by section 2(1) of the Crimes Act 1961 or
The subject of a pecuniary penalty under the Securities Act 1978.
[Note: THIS “AUTOMATIC PROHIBITION” APPLIES IF A BANNED COMPANY DIRECTOR IS CONVICTED OF BREACHING A BANNING ORDER, AND IT IS IMPOSED OVER AND ABOVE ANY PRE-EXISTING BAN THAT HAD ITS OWN TERM (e.g. a four year ban). IT WOULD APPEAR THAT THE “AUTOMATIC PROHIBITION” CAN ONLY BE REMOVED BY A COURT ORDER DISCHARGING THE PROHIBITED PERSON FROM HIS OR HER STATE OF DISQUALIFICATION. NO BANNING ORDER IMPOSED BY THE REGISTRAR UNDER S. 385 (3) CAN EXCEED TEN YEARS]. [Read more…]