Companies Act 1993

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

158: Validity of director's acts

You could also call this:

“Director's actions remain valid despite appointment issues”

If someone acts as a director of a company, their actions are still valid even if there were problems with how they became a director. This means that even if the person wasn’t appointed properly or if they don’t meet the requirements to be a director, the things they do as a director still count. So, you don’t need to worry about a director’s actions being invalid just because there was an issue with their appointment or qualifications.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320801.

Topics:
Business > Industry rules
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Part 8 Directors and their powers and duties
Appointment and removal of directors

158Validity of director's acts

  1. The acts of a person as a director are valid even though—

  2. the person's appointment was defective; or
    1. the person is not qualified for appointment.