The Feltex decision : A case of threadbare governance; Directors can take no comfort from the recent decision to dismiss all charges against five Feltex directors. The case shows the sad state of governance in too many New Zealand companies, writes expert Doug Matheson

The Feltex decision, as it may become known, is a distraction from what is really wrong with governance in New Zealand and many other parts of the world. It is, in effect, a real example of a board not performing its fundamental governance role and responsibilities. Unfortunately, the wider Feltex governance shortcomings have been sidetracked by the Auckland District Court decision to dismiss all Ministry of Economic Development-inspired charges taken under the Financial Reporting Act 1993 against five Feltex directors. And, of course, there are other similar cases pending against Lombard and Nuplex directors.