Plain language law

New Zealand law explained for everyone

Companies Act 1993

Directors and their powers and duties - Transactions involving self-interest

143: Application of sections 140 and 141 in certain cases

You could also call this:

“When sections 140 and 141 don't apply to directors' payments or protections”

You don’t need to worry about section 140 and section 141 in two special cases. First, if a director gets paid or receives any other benefit that follows the rules in section 161, these sections don’t apply. Second, if a director receives protection or insurance as allowed by section 162, these sections also don’t apply. This means that in these specific situations, the usual rules about self-interest don’t come into play.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320678.

Topics:
Business > Industry rules
Business > Fair trading
Previous

142: Effect on third parties, or

“How cancellation of a company's transaction affects innocent buyers”

Next

144: Interested director may vote, or

“Directors can participate in decisions on deals they have a personal interest in”

Part 8 Directors and their powers and duties
Transactions involving self-interest

143Application of sections 140 and 141 in certain cases

  1. Nothing in section 140 and section 141 applies in relation to—

  2. remuneration or any other benefit given to a director in accordance with section 161; or
    1. an indemnity given or insurance provided in accordance with section 162.