Marama Fox has stepped down as Maori Party co-leader.

Marama Fox has stepped down as Māori Party co-leader.

In a statement issued on Wednesday, the Māori Party said it had formally received and accepted Fox's resignation from the position of co-leader.

Fox has been embroiled in controversy over debt.

The Māori Party president Che Wilson said: "We acknowledge the significant contribution that Marama has made to the party over the years.

"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."

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Fox has lost her consultancy company in liquidation proceedings.

Marama Fox Consultancy Group Tapui Ltd is registered in Masterton and was formed in October 2017, after she lost her parliamentary seat in the general election.

Ohnyx IT Solutions Ltd, a Masterton-based information technology support services provider, filed proceedings against Fox's company at the High Court in Wellington, on July 3.

Associate Judge Kenneth Johnston made the order liquidating the company last month.

A Rotorua travel agent says she had been left nearly $40,000 out of pocket after the business went into liquidation.

Amy Turuta said she was owed $39,165.57 by Fox's Consultancy Group Tapui.

Fox told Newsroom she was "devastated" at the current situation. She set up her business after her party was ousted from Parliament at the last electgion.

She was travelling the country in an effort to get investors for a proposed venture to build environmentally friendly, affordable homes.​