Five year ban for Five Star directors

Directors of the failed Five Star Group of companies have been banned from corporate life for five years.

Peter Barker, the deputy registrar of companies, said Marcus Arthur MacDonald, Nicholas George Kirk and Anthony Walpole Bowden are prohibited from directing or managing companies in New Zealand for five years.

Barker had to assess whether the directors of Five Star Finance Ltd, Five Star Consumer Finance Ltd and Five Star Debenture Nominee Ltd were responsible for the companies demise.

Barker found failings to be serious and fundamental.

A report to the Registrar of Companies by the Ministry of Economic Development's National Enforcement Unit alleged mismanagement, included reckless trading, breaches of directors' duties and failure to maintain adequate books and records.

The prohibition notices were issued on March 23.

Five Star was put into receivership in 2007.

- NZPA