By Geet G
24 June 2026
Six former company directors have been banned from managing or directing companies in New Zealand for periods ranging from seven to ten years after the Registrar of Companies found their mismanagement contributed to company failures.
The prohibitions, imposed during April and May 2026 under Section 385 of the Companies Act 1993, highlight the Companies Office’s growing focus on holding directors personally accountable when poor governance leaves businesses, creditors and taxpayers exposed.
The action affects businesses across multiple industries, including construction, hospitality, employment services, packaging and manufacturing.
What is a Section 385 prohibition?
A Section 385 prohibition is one of the strongest enforcement powers available to the Registrar of Companies.
Rather than serving as a criminal punishment, the provision is designed to protect the public by preventing individuals whose management contributed to company failures from becoming directors or participating in the management or promotion of companies for a specified period.
The Companies Office says the measure helps:
- Protect creditors.
- Improve corporate governance.
- Strengthen confidence in New Zealand’s company register.
- Prevent repeated patterns of business mismanagement.
Members of the public can also check whether someone has been prohibited by using the Companies Register’s “Search for a banned director” tool.
Who has been banned?
The latest prohibitions involve six individuals.
James Clark
Ban: Seven years and six months
James Clark was prohibited following the failure of several packaging and printing businesses, including Aztec Packaging Group Limited, Aztec Impex Limited, I Print on Demand 2021 Limited and The Caring Card Company 2022 Limited.
According to the Companies Office, the businesses continued trading despite mounting financial pressure, lacked adequate financial oversight and accumulated unpaid tax debts. Several companies entered liquidation following Inland Revenue applications, with creditors receiving no distributions.
Hale Patuavalu Tuiniue Huka
Ban: Eight years
The former director of Roof-Fit Limited was prohibited after investigators found the roofing company failed to respond appropriately to financial difficulties and did not properly maintain company and financial records.
The company entered liquidation following action by Inland Revenue and creditors are not expected to receive any distributions.
Cassandra Hope Knox
Ban: Eight years and six months
Knox was banned following the failures of Trinity Employment Services Limited and Elite Employment Limited.
The Companies Office found the businesses continued operating despite financial pressure and without sufficient regard for creditors’ interests. Both companies were placed into liquidation after Inland Revenue applications.
Christopher Charles Rupe
Ban: Eight years and six months
Christopher Charles Rupe, associated with S.P.Q.R. Limited, a hospitality business, was prohibited after the Registrar found inadequate financial planning and oversight contributed to the company’s collapse.
The restaurant entered liquidation following Inland Revenue enforcement, with only limited recoveries made for creditors.
Warren Graeme Sinclair
Ban: Eight years and six months
Sinclair’s prohibition relates to several companies involved in container homes, modular housing and sales businesses.
Investigators found he continued trading despite ongoing financial pressure and failed to keep the affairs of related companies properly separated.
Inland Revenue remained one of the major creditors across the businesses, with little or no return expected for unsecured creditors.
Charles Lewis Innes
Ban: Ten years
Charles Lewis Innes received the longest prohibition, the maximum available under current legislation.
The Companies Office found repeated mismanagement across Podular Housing Systems Limited and Sanders Manufacturing Limited, including failures to establish proper financial monitoring systems and maintain company records.
Both companies accumulated significant tax debts, with unsecured creditors expected to receive no distributions.
Why directors should take notice
While business failure alone does not automatically result in a prohibition, directors have legal duties under the Companies Act to act responsibly, keep proper financial records and avoid reckless trading.
The Companies Office said prohibition periods are determined after considering factors such as:
- The seriousness of the mismanagement.
- Whether there was a pattern of non-compliance.
- The director’s overall conduct.
- The impact on creditors and the public.
The latest decisions demonstrate that regulators are increasingly willing to use these powers where directors fail to meet their legal obligations.
Protecting confidence in New Zealand’s business environment
Corporate governance experts have long argued that effective enforcement helps maintain confidence in New Zealand’s business environment.
When directors continue operating financially distressed companies without proper oversight, suppliers, employees, Inland Revenue and unsecured creditors often bear the financial consequences.
By removing individuals who repeatedly fail to meet governance standards, regulators aim to encourage responsible company management while protecting honest businesses that comply with the law.
Maximum ban issued for the first time in nearly a decade
The ten-year prohibition imposed on Charles Lewis Innes is particularly significant.
According to the Companies Office, the last time a director received the maximum ten-year prohibition was nearly a decade ago, when Nelson businessman Robert Cottle was banned in 2017 following the collapse of Infratech Mining.
The latest enforcement action signals that New Zealand regulators remain prepared to impose lengthy prohibitions where serious mismanagement is established.
How the public can check banned directors
Anyone considering doing business with a company director can search the official Companies Register to determine whether an individual is currently prohibited from acting as a director.
The Companies Office publishes all prohibition notices in the New Zealand Gazette and maintains an online register of prohibited directors.
As New Zealand continues strengthening corporate governance standards, these enforcement actions serve as a reminder that company directors carry significant legal responsibilities that extend well beyond simply running a business.
References
- Companies Office, Ministry of Business, Innovation and Employment (MBIE), Media Advisory, 24 June 2026.
- Companies Act 1993 (Section 385).
- Companies Office Register.
