Plain language law

New Zealand law explained for everyone

Companies Act 1993

Enforcement - Personal actions by shareholders

172: Actions by shareholders to require company to act

You could also call this:

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

Even though there are rules about when you can take action for problems with a company, you can still ask the court to make the company’s board do something. You can do this if you own shares in the company. The court will only do this if they think it’s fair and right. They can order the board to do things that the company’s rules or the law say they should do. When the court makes this order, they can also give other help that they think is needed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320833.

Topics:
Business > Industry rules
Business > Fair trading
Crime and justice > Courts and legal help
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171: Personal actions by shareholders against company, or

“How shareholders can take legal action against their company”

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173: Representative actions, or

“How shareholders can group together to take legal action against a company or director”

Part 9 Enforcement
Personal actions by shareholders

172Actions by shareholders to require company to act

  1. Notwithstanding section 171, the court may, on the application of a shareholder of a company, if it is satisfied that it is just and equitable to do so, make an order requiring the board of the company to take any action that is required to be taken by the constitution of the company or this Act and, on making the order, the court may grant such other consequential relief as it thinks fit.

Notes
  • Section 172: amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).