New Zealand law explained for everyone
If you act as a director of a company when you’re not supposed to, you might get in trouble. This can happen if you break the rules in section 382 or if you go against an order made under section 383. If you do this, you could end up having to pay for things yourself.
If the company owes money and can’t pay it back, you might have to pay it instead. This includes any debts that the company didn’t pay while you were acting as a director when you shouldn’t have been. You might have to pay this money to the person in charge of closing down the company (called a liquidator).
You might also have to pay back any money the company borrowed from other people or businesses (called creditors) while you were wrongly acting as a director. This means you could end up paying the company’s debts out of your own pocket.
This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.
Next up: 385: Registrar or FMA may prohibit persons from managing companies
or “Registrar or FMA can ban people from managing companies”A person who acts as a director of a company in contravention of section 382 or an order made under section 383 is personally liable to—