Blue Chip Director Banned

Blue Chip Director Banned

11 June 2010

The Deputy Registrar of Companies Peter Barker has prohibited Mark Ronald Bryers, director and founder of the Blue Chip Companies, from directing or managing a company in New Zealand.

Under Section 385 of the Companies Act 1993, where a person has been a director of more than one failed company within five years, that person must satisfy the Registrar that their management of the companies’ affairs was not, at least partly, responsible for the companies’ demise.

The Ministry of Economic Development provided a report to the Registrar of Companies that alleged mismanagement, including issues of liquidity, solvency, related party risk and statutory compliance.

Mr. Bryers did not seek to oppose any prohibition and did not provide submissions in respect of the report. Mr Bryers has thus been unable to satisfy the Registrar of Companies that his management of the companies was not, at least partly, responsible for their failure.

Mr. Barker noted that this matter is separate and distinct from any other legal proceedings issued against Mr. Bryers. Mr. Barker records that nothing in his decision advances or detracts from any arguments made by the parties to those other legal proceedings.

The Prohibition Notice was issued on 27 May 2010. Mr. Bryers is prohibited for five years from this date.

Prohibition

The maximum term of prohibition under Section 385(3) of the Companies Act 1993 is five years. The prohibition prevents those concerned from acting as directors or promoters of a company, or being concerned in, or taking part, whether directly or indirectly, in the management of a company.

Penalty

Failure to comply with the notice of prohibition is an offence and persons are liable upon conviction to a penalty of up to five years imprisonment or a fine not exceeding $200,000.

ENDS

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