Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Share register

90: Directors' duty to supervise share register

You could also call this:

“Directors must ensure the company's share register is accurate and up to date”

You need to know that directors of a company have a job to do with the company’s share register. The share register is a list that shows who owns shares in the company.

Directors must make sure the share register is kept properly. They need to take steps to check that it’s being done right. This means making sure that when people buy or sell shares, the changes are written down in the register quickly.

If a director doesn’t do this job properly, they’re breaking the law. They could get in trouble and might have to pay a fine or face other penalties. The exact punishment is written in another part of the law called section 373(2).

Remember, it’s important for directors to pay attention to the share register and make sure it’s always up to date.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320451.

Topics:

Business > Industry rules

Business > Fair trading

89: Share register as evidence of legal title, or

“The share register proves legal ownership of shares, with some exceptions”

91: Power of court to rectify share register, or

“Court can correct mistakes in share register and compensate affected parties”

Part 6 Shares and debentures
Share register

90Directors' duty to supervise share register

It is the duty of each director to take reasonable steps to ensure that the share register is properly kept and that share transfers are promptly entered on it in accordance with section 84.
A director who fails to comply with subsection (1) commits an offence and is liable on conviction to the penalty set out in section 373(2).