Construction company director Soakimi Misiuata has been banned from managing companies for seven years after authorities found his mismanagement contributed to the failure of a company that went into liquidation owing Inland Revenue more than $318,000.
Misiuata, the sole director and shareholder of Heivon Constructors, received the longest prohibition among five company directors banned during June and July, Stuff reported.
The ban prevents Misiuata from being a director or being involved in the promotion, formation or management of a company for seven years.
Heivon Constructors went into liquidation last year owing $318,343 to Inland Revenue, according to a liquidator’s report.
Of that amount, $163,056 was recorded as a preferential claim.
The liquidator also identified an overdrawn shareholder current account of $59,123.34.
The seven-year ban was imposed after the Registrar of Companies was satisfied that Misiuata’s management of the company contributed to its failure.
The case was among five director prohibitions imposed under section 385 of New Zealand’s Companies Act 1993 during June and July.
Protection of creditors and public
Section 385 allows the Registrar of Companies to prohibit a person from being a director or being involved in the promotion or management of companies where the statutory requirements are met, including circumstances involving failed companies and management that contributed to their failure.
A Companies Office spokesperson said the prohibition regime was intended to protect the public and creditors and uphold appropriate standards of company management.
“It helps protect the public and creditors, reinforces appropriate standards of company management, and supports confidence in New Zealand’s company regime,” the spokesperson said.
Misiuata received the longest ban of the five directors.
Cameron Griffiths, director of Allone Landscape & Design, was banned for five years. Liquidators had filed a serious problem report with the Ministry of Business, Innovation and Employment regarding alleged mismanagement of the company.
According to the liquidator’s report, Allone Landscape & Design allegedly owed Inland Revenue $119,293.01 in preferential claims. Liquidators also wrote off an overdrawn shareholder current account of $67,764 after attempts to pursue Griffiths reportedly received no response or payment.
Carl Reinecke, director of Berit Holdings, IPassive NZ and Redcrow Auckland, was also banned for five years. He was formerly a director and shareholder of Armour.
Peter Fussell, director of No Fuss Financial Services, received a four-year ban, while Armour director Elize Reinecke was prohibited from managing companies for three years.
The five directors were banned under section 385 of the Companies Act 1993.
