Crafar buyer faces ban

May Wang. Photo / Dean Purcell

May Wang, the controversial businesswoman fronting a Chinese bid for the 16 Crafar dairy farms, may be banned as a company director and manager.

The Registrar of Companies is "currently considering exercising his powers" under the Companies Act, which says a person involved in the management of two or more failed firms can be banned from managing a company for up to five years. The Registrar says Wang has been a director or manager of eight collapsed companies in the past four years.

National Enforcement Unit investigation manager Phil Day confirmed Wang had been "identified as a potential candidate for that process".

Wang will have the opportunity to make representations.

The receivers of the Crafar farming empire announced last week they had signed a conditional sale agreement with UBNZ Funds Management, a New Zealand-registered company of which Wang is the sole shareholder and director.

Wang is fronting the bid for Hong Kong-listed Natural Dairy (NZ) Holdings, which owns 20 per cent of another Wang company UBNZ Assets Holdings.

The 16 farms have been in receivership since October.

The deal needs to be approved by the Overseas Investment Office. OIO spokesman Brad Young said the office was waiting to receive an updated application from Natural Dairy. He said one criteria would-be buyers of New Zealand assets had to meet was that they be of good character.

The OIO would look at whether those involved had ever had criminal or civil proceedings brought against them.

"We also look at whether they have business acumen or business experience in the investment."

Wang is also facing charges brought by the Companies Office. She is accused of failing to comply with one of the liquidations of her Dynasty group of companies, not keeping accurate accounts and leaving the country to avoid examination of the company's affairs.

Last week the National Business Review reported she had accepted responsibility for more than $22million of debts. She is offering just $500,000 to settle the debts.

In April Wang, a New Zealand citizen, defended her company from criticism and opposition to foreign ownership of New Zealand farm land.

"Even if I have failed with my previous business, why couldn't I be successful in business again?" she said.

Meanwhile it has emerged government farming operation Landcorp is considering bidding for the farms.

Agriculture Minister David Carter upset Natural Dairy when he said last week a sale to that company was "unlikely to go through".

Prime Minister John Key said he had warned Carter about commenting further.