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New Zealand law explained for everyone

Companies Act 1993

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

156: Removal of directors

You could also call this:

“How a company can remove a director from their position”

A company can remove a director from their job. To do this, the company needs to hold a meeting and pass an ordinary resolution. This means that most people at the meeting agree to remove the director.

When the company calls the meeting, they must tell everyone that one of the reasons for the meeting is to remove the director. They have to say this clearly in the notice they send out about the meeting.

Remember, these rules only apply if the company’s constitution (the special rules for that company) doesn’t say something different. The constitution might have its own rules about removing directors.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320699.

Topics:
Business > Industry rules
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“Vote on directors one at a time, unless everyone agrees otherwise”

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157: Director ceasing to hold office, or

“How a director can leave or be removed from their role”

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

156Removal of directors

  1. Subject to the constitution of a company, a director of the company may be removed from office by ordinary resolution passed at a meeting called for the purpose or for purposes that include the removal of the director.

  2. The notice of meeting must state that the purpose or a purpose of the meeting is the removal of the director.