Key quiet on whether director should lose knighthood

Sir Douglas Graham and three other directors of the failed Lombard Finance company were last week found guilty on four charges of making untrue statements in the company's offer documents. Photo / File

A decision over whether Sir Douglas Graham should be stripped of his knighthood is still some way off, with Prime Minister John Key today refusing to say which way he is leaning.

Graham and three other directors of the failed Lombard Finance company were last week found guilty on four charges of making untrue statements in the company's offer documents, and were remanded on bail for sentencing on March 29.

The charges related to the company's prospectus in December 2007 and whether their 4400 clients were misled by untrue statements about the company's position and associated risks.

They carry a maximum penalty of five years' imprisonment or fines of up to $300,000.

Following the verdict, people who invested in the company called for Graham to be stripped of his knighthood.

Speaking to Newstalk ZB this morning, Mr Key said he would not comment until after the sentencing on whether that would happen.

"Obviously, the ultimate responsibility lies with me as Prime Minister, but that matter is before the courts,'' he said.

"If I was to make a decision one way or the other that could be seen to be influencing the courts.''