Plain language law

New Zealand law explained for everyone

Companies Act 1993

Directors and their powers and duties - Directors' duties

134: Directors to comply with Act and constitution

You could also call this:

“Directors must follow the law and company rules”

If you are a director of a company, you have an important job to do. You must follow the rules set out in the Companies Act 1993 and your company’s constitution. This means you can’t do anything, or let the company do anything, that goes against these rules. It’s your responsibility to make sure everything you and the company do is allowed by the law and your company’s own rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320665.

Topics:
Business > Industry rules
Business > Fair trading
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“Directors must use their powers only for their intended purpose”

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135: Reckless trading, or

“Directors must not allow risky business practices that could harm creditors”

Part 8 Directors and their powers and duties
Directors' duties

134Directors to comply with Act and constitution

  1. A director of a company must not act, or agree to the company acting, in a manner that contravenes this Act or the constitution of the company.