A company executive has avoided a conviction after his luxury launch smashed into a dinghy injuring the two occupants.

The small boat was "crushed like a tin can" and Maritime New Zealand says the incident, near Waiheke Island in March last year, could easily have been fatal.

Former Fay Richwhite CFO, John Balgarnie today admitted a charge of operating a ship in a manner which caused unnecessary danger.

He was discharged without conviction after the court heard he might need to travel overseas for treatment for health problems.

The judge ordered he write a letter of apology and pay the victims $11,549.