Blues chairman Muir stands down as Hanover proceeding looms

Greg Muir. File photo / NZPA

The chairman of the Auckland Super 15 rugby franchise, Greg Muir, has stood down from the board of the Auckland-based rugby franchise due to "other business matters."

The resignation comes four days after he was named as one of the six former Hanover Finance directors and promoters facing civil proceedings by the Financial Markets Authority.

Muir's resignation from the Blues board comes almost 17 months after his involvement in Hanover prompted him to quit as a director of children's clothing retailer Pumpkin Patch.

"I have other business matters that need resolving and in discussions with the Auckland board, consider it appropriate for me to stand down at this time," Muir said in a statement.

In December, Muir said there was "nothing materially untruthful" in the December 2007 prospectus that led to the FMA proceedings.

On Sunday, FMA chief executive Sean Hughes said NZ Warriors co-owner Eric Watson, former Hanover chief executive Mark Hotchin, Muir, and Ngai Tahu iwi figurehead Sir Tipene O'Regan, along with lesser-known Bruce Gordon and Dennis Broit, face civil proceedings relating to Hanover's failure.

The watchdog is seeking declarations, pecuniary penalty orders and compensation for investors who made investments during the period Dec. 7 2007 to July 22 2008. During this period new investments and reinvestments totalled $35 million.

Muir is the second high-profile figure in rugby circles caught up in governance roles during the collapse of the finance sector, with the late NZRU chairman Jock Hobbs a director of Strategic Finance.