A former justice minister who was a director of the failed finance company Lombard, says he would have immediately resigned if any concerns had been raised with him about the state of the company.
Sir Douglas Graham is one of four Lombard directors on trial before the High Court in Wellington accused of making false statements and misleading investors.
He has told the court that Lombard's board had no role in day-to-day decisions regarding matters such as loan approvals and monitoring the organisation's loan book.
Sir Douglas said it was appropriate for the board to rely on Lombard's management to run the loan book in appropriate commercial manner and to raise with the board any non-compliance.
Lombard Finance collapsed in April 2008 owing $127 million to more than 4,000 investors.