Marama Fox has resigned as co-leader of the Māori Party.

The Māori Party executive today issued a statement saying it had received and accepted Fox's resignation from the position of co-leader.

Fox has been tied up in controversy over the past few weeks after a consultancy company she set up less than a year ago owes was put into liquidation, owing creditors at least $70,000.

Māori Party president Che Wilson said Fox made a "significant contribution" to the party over the years.

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"Marama has been a dedicated advocate for social justice issues, particularly related to family violence.

"We support her decision to resign in order to focus on issues related to her private business.

"We know that her absolute priority is to repay any outstanding debts, and we believe that is the right and proper course of action for her to take."