Plain language law

New Zealand law explained for everyone

Companies Act 1993

Enforcement - Personal actions by shareholders

171: Personal actions by shareholders against company

You could also call this:

“How shareholders can take legal action against their company”

If you own shares in a company, you can take legal action against that company. You can do this if the company doesn’t do what it’s supposed to do for you as a shareholder. This is called bringing an action against the company. It’s a way for you to protect your rights as someone who owns part of the company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320832.

Topics:
Business > Industry rules
Business > Fair trading
Crime and justice > Courts and legal help
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170: Actions by shareholders to require directors to act, or

“Shareholders can ask courts to make directors follow company rules or laws”

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172: Actions by shareholders to require company to act, or

“Shareholders can ask the court to make the company's board take action”

Part 9 Enforcement
Personal actions by shareholders

171Personal actions by shareholders against company

  1. A shareholder of a company may bring an action against the company for breach of a duty owed by the company to him or her as a shareholder.