If you are a director, you are not in trouble under section 36(1)(b) or (2)(c) if you can prove you did not do anything wrong or careless. You must show that the problem with paying back the money was not your fault. You can do this by proving you did not act in a way that was misconduct or negligence on your part, as stated in the section 36(1)(b) or (2)(c) rules.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702183.
36: Offeror obligations if notice of withdrawal given, or
"What happens if you change your mind about buying a financial product and want your money back?"
38: Civil liability for certain contraventions of this Part, or
"Breaking certain finance rules might mean you have to pay money to someone else"
A director is not liable under section 36(1)(b) or (2)(c) if he or she proves that the default in the repayment of the money was not due to any misconduct or negligence on his or her part.
