Plain language law

New Zealand law explained for everyone

Plain Language Law homepage
132: Exercise of powers in relation to employees
or “Directors can help employees when a company reduces or stops business”

You could also call this:

“Directors must use their powers only for their intended purpose”

If you are a director of a company, you must use your powers for the right reasons. This means you can’t use your position or authority in the company for anything other than what it’s meant for. You need to make sure that when you make decisions or take actions as a director, you’re doing it to help the company and not for any other purpose.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.


Next up: 134: Directors to comply with Act and constitution

or “Directors must follow the law and company rules”

Part 8 Directors and their powers and duties
Directors' duties

133Powers to be exercised for proper purpose

  1. A director must exercise a power for a proper purpose.