CAUSES OF NEW ZEALAND FINANCE COMPANY COLLAPSES: A BRIEF REVIEW

摘要

During the period 2006 - 2010, 49 finance companies, in New Zealand, collapsed or entered moratoriums, owing investors in excess of $8 billion, and the fingers of blame continue to point in circles. The blame for this tremendous financial crisis is extensive and a consolidation of arguments is essential for the wider understanding of the topic and to put responsibilities into perspective. A part of this paper is to recognize who can and is being held legally responsible for investors’ sake, and also identify parties who have failed their responsibilities. We have highlighted the major issues created by corporate governance being the most direct cause of finance company failure in NZ. We believe in some way these findings will help avoid a similar crisis in the future and resolve a still commonly blurred line in public opinion.