Plain language law

New Zealand law explained for everyone

Companies Act 1993

Directors and their powers and duties - Appointment and removal of directors

153: Appointment of first and subsequent directors

You could also call this:

“How directors are appointed when a company starts and afterwards”

When a company is first registered or when companies join together (called amalgamation), the people named as directors in the paperwork become directors right away. They stay directors until they stop being directors according to the rules in this law.

After the first directors, new directors are usually chosen by a vote. This vote is called an ordinary resolution. However, if the company’s constitution (its own set of rules) says something different about how to choose directors, then those rules are followed instead.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320696.

Topics:
Business > Industry rules
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“Directors must agree in writing before being appointed”

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Part 8 Directors and their powers and duties
Appointment and removal of directors

153Appointment of first and subsequent directors

  1. A person named as a director in an application for registration or in an amalgamation proposal holds office as a director from the date of registration or the date the amalgamation proposal is effective, as the case may be, until that person ceases to hold office as a director in accordance with this Act.

  2. All subsequent directors of a company must, unless the constitution of the company otherwise provides, be appointed by ordinary resolution.