Dominion Finance and North South Finance directors, including the former chief executive of Invercargill-based Alliance Group Rick Bettle, and former Dunedin insurance agent Vance Arkinstall, face a maximum penalty of five years imprisonment or fines of up to $300,000 if found guilty on the criminal charges and up to $500,000 fines on the civil proceedings.
The other directors named are Terence Butler, Ann Butler, Paul Forsyth and Robert Barry Whale.
Mr Bettle is a former chairman of the TAB and the Racing Industry Board.
He is listed as the chairman of Powerco.
Mr Arkinstall is the chief executive for the Investment Saving and Insurance Association.
Dominion went into receivership in September 2008, owing about $176.9 million to 5900 investors.
According to receivers, it was likely that secured debenture holders would receive less than 25% of their investment back.
Unsecured creditors are likely to receive no return.
Two companies closely associated with Timaru businessman Allan Hubbard - Southbury Group and Hubbard Churcher Trust Management - are the top two Dominion shareholders.
Neither company is expected to receive any money back.
Four former Lombard Finance and Investments directors, including high-profile former cabinet minister and former Lombard chairman Sir Douglas Graham, face fines of up to $500,000 each after the Securities Commission alleged in April the failed finance company's prospectus documents and advertisements misled investors.
The civil case follows extensive investigations since Lombard was placed in receivership in April 2008, owing about 4400 investors about $127 million, the commission said.
The other three directors charged are Michael Reeves, former Labour cabinet minister William Jeffries and Lawrence Bryant.
Craigs Investment Partners broker Chris Timms said there was a move by the commission to start taking action against directors of failed finance companies.
"We are a long way behind the United States in the time it takes to get to these matters but the commission now appears to have a mandate to have a go at this and make someone accountable.
"I don't know if it will lead to massive amount of money being recouped for investors but it will put a dent in the ability of previous directors to continue in the future."
The Dominion Finance situation was considerably worse than investors and advisers were led to believe and the commission's actions were no surprise to anyone, he said.
Commission chairman Jane Diplock said the commission alleged that Dominion Finance Group's offer documents and advertisements misled investors by misrepresenting the investment risks, especially in relation to related party transactions, lending standards, loan quality and impairment, liquidity and the company's overall financial position.
The commission also alleged that North South Finance's offer documents and advertisements misled investorsDominion directors are also alleged to have made false statements in the group's registered prospectus dated September 13, 2007, as amended by an extension a week later.
Similar claims are made against North South's prospectus and extension.
The extensions claimed the relevant company's financial position had not materially and adversely changed since the company's last balance date and that the prospectus was not misleading by failing to properly refer to adverse circumstances.
Ms Diplock said the commission alleged that was false and that the directors' statements misled investors.
In addition, the commission alleged that a quarterly newsletter of Dominion, and a letter to the investors of both Dominion and North South, contained similar untrue statements about the financial position of the companies.
