Franchise consultant Campbell Shorland Spencer was in court earlier this month for allegedly breaching the ban on his acting as a company director and manager.

The alleged breach, which would be classed as a criminal act, is thought to be in connection with Mr Spencer’s continuing activities with Base Franchise Ltd, of which his father Neil Spencer is a director and shareholder. A status hearing is due in November. Neil Spencer and a third defendant who stood in for Spencer after the ban was imposed were also in court. A Base Franchise client has also apparently reported the company to the Ministry of Economic Development following a poor experience.

Mr Spencer was banned as a company director for three years from 9 December 2009 under section 385 of the Companies Act 1993, which gives the Registrar of Companies the power to prohibit a person from being a director or promoter of a company, or being concerned in, or taking part, whether directly or indirectly, in the management of a company for a period not exceeding five years. If a person is convicted of breaching the prohibition order, they are liable to imprisonment for a term not exceeding five years or to a fine not exceeding NZ$200,000.

The Bob Dey Property Report website reported in July that one of Mr Spencer’s previous franchise consulting companies, Team Maddison (NZ) was to be removed from the Companies register. It said that Mr Spencer told the liquidators the company had $200,000 of debts to recover, but it had $130,000 of tax debts and $211,000 of other creditors. All the $200,000 of debts was disputed and not recovered.

According to Bob Dey, prior to the ban Mr Spencer was a director of Base Franchise Ltd, Pan Pacific Marketing Ltd, and a number of companies now removed from the register: CC-TM Ltd, CSTM Ltd, EC-TM Ltd, MC-TM Ltd, NZG-TM Ltd, Oasis-TM Ltd, Regency Home Management Ltd, Stonehead Management Services Ltd, Team Maddison Franchise Systems Ltd, Team Maddison International Ltd, The Chaucer Group Ltd, The Chaucer Institute Ltd, TTT-TM Ltd, & WD-TM Ltd.

Update:  Banned franchise company director remanded, seeks sentence indication