The Mainzeal collapse - lesson for directors #1

Mainzeal directors chased for double the compensation over collapse

Whether you are a director of a large company, or a small family owned one, you are taking on some hefty legal duties, as Jenny Shipley and others found out to their cost. So what do you need to do as a director?

The first step is to be critical. Your job is to take a step back sometimes and make sure whether the information you are receiving is right. Don't just rely on what you are told. Ask to see the information. Is the documentation in order? If you are not sure, or are uncomfortable with what you are told, seek advice -- for yourself personally, because you are the one who will be personally liable.

The liquidators of Mainzeal have launched a cross appeal that could result in the directors - including former Prime Minister Dame Jenny Shipley - having to pay double the compensation.