Twelve Ways a Company Director Can get a Criminal Record
Criminal prosecutions of failed finance company directors has been a useful reminder that being a company director (or a deemed director) can be very risky as well as being stressful and much hard work.
Most people would think of tax as a way a director could end up in jail or with a criminal prosecution but in fact, there are another eleven ways a director could get a criminal record:
- Acts without a resource consent when one is required or does not comply with an enforcement order, abatement notice or water shortage directive;
- Pollutes, unlawfully disposes of trade waste or leaks, spills or releases harmful substances; or engages in misleading, deceptive or unconscionable conduct;
- Makes false representation regarding products;
- Fails to provide a safe working environment that has adequate emergency procedures;
- Does not maintain an accurate record of accidents and fails to notify the proper authorities;
- Requires the giving of covenants that are designed to, or would be likely to, lessen competition;
- Attempts to fix a minimum price for resale by its customers;
- Supplies goods that do not comply with product safety and information standards;
- Accepts payment for goods where there are reasonable grounds to expect it will not be able to supply them;
- Manufactures, stores, supplies, transfers, sells or uses dangerous goods without a licence or other than in accordance with specified conditions; or
- Delays or fails to report an accident involving dangerous goods.
Directors have a duty (under law) of care to customers, suppliers and employees as well as the general public. Make sure you stay out of jail by taking the appropriate advice, doing your homework and knowing the law.