If you are a director, you are not liable under section 85(5) if you can prove that you did not repay money because of something that was not your fault. You must show that you did not do anything wrong or neglect your duties. If you can prove this, you will not be liable, and you can find more information about this in section 85(5).
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702193.
85: How offeror must deal with applications on expiry, or
"What happens to your application when a financial product offer ends"
87: Money for financial products must be held in trust, or
"Your money is safe when you buy financial products because sellers must look after it until you get what you paid for."
A director is not liable under section 85(5) 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.
