If you are a director, you are not liable for something if you can prove you did not do anything wrong or neglect your duties. This is in relation to not repaying money as required under section 55(1)(b) or (2)(c). You must show that the mistake was not your fault to avoid being liable.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702188.
55: Offeror obligations if notice of withdrawal given, or
"What happens if you change your mind about a financial product and want your money back?"
57: Disclosure of material information and content of PDS and register entry, or
"Telling people important information when selling financial products"
A director is not liable under section 55(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.
