Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shareholders and their rights and obligations - Liability of shareholders

102: Liability of personal representative

You could also call this:

“When a personal representative holds shares for a deceased person's estate, their liability is limited”

If you’re registered as the holder of a share that belongs to the estate of someone who has died, and you’re the personal representative of that estate, your liability for that share is limited. You’re only responsible up to the amount that’s available from the estate’s assets for paying creditors, after other claims have been paid. This applies to the assets you have when someone asks you to pay for the liability.

When we talk about trusts in this context, we’re also including the duties you have as a personal representative of the estate. This means the responsibilities you have when you’re looking after the estate are considered part of the trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320476.

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Part 7 Shareholders and their rights and obligations
Liability of shareholders

102Liability of personal representative

  1. The liability of the personal representative of the estate of a deceased person, who is registered as the holder of a share comprised in the estate, does not, in respect of that share, exceed the proportional amount available from the assets of the estate, after satisfaction of prior claims, for distribution among creditors of the estate, being assets which, at the time when any demand is made for the satisfaction of the liability, are held by that personal representative on the same trusts as apply to that share.

  2. For the purposes of this section, trust extends to the duties of a personal representative.