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Credit Contracts and Consumer Finance Act 2003

Enforcement and remedies - Miscellaneous

116A: Directors and senior managers may also be liable for statutory damages or compensation

You could also call this:

"Directors and senior managers can be held responsible for paying damages or compensation if they break the law."

Illustration for Credit Contracts and Consumer Finance Act 2003

If you are a director or senior manager, you can be liable for statutory damages or compensation. This happens if a court finds that there has been a breach of the Credit Contracts and Consumer Finance Act 2003. You can be liable if you breach certain sections of the Act, such as subpart 2 or 3. If a court is satisfied that you have breached the Act, it may order you to pay statutory damages under section 90 or to pay an amount under section 94. You are jointly and severally liable with the creditor or any other person against whom an order is made. This means you can be held responsible for paying the damages or compensation, along with the creditor or other person. You can apply to the court under section 91 if this section applies to you. The court must take you into account under section 92(e) when making its decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS626630.

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Part 4Enforcement and remedies
Miscellaneous

116ADirectors and senior managers may also be liable for statutory damages or compensation

  1. This section applies if, in a proceeding under subpart 2 or 3, the court is satisfied that there has been—

  2. a breach of any provision of this Act in respect of which the debtor is entitled to recover from the creditor an amount of statutory damages under section 88; or
    1. a breach referred to in section 93.

      1. If the court is satisfied that a director or senior manager has breached section 59B in respect of the matter, the court may order that the director or manager is liable to pay statutory damages under section 90 in respect of the matter or to pay an amount under section 94 (as the case may be).

      2. See section 106, which provides a defence to a claim for statutory damages under section 88.

      3. See also section 107A(1)(a)(vi) (civil pecuniary penalties).

      4. The liability of the director or manager is a joint and several liability with that of the creditor or any other person against whom an order under section 90 or 94 is made.

      5. If this section applies, a director or senior manager may apply to the court under section 91 and the court must take directors and senior managers into account under section 92(e).

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      Notes
      • Section 116A: inserted, on , by section 48 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).