What are the duties of a Company Director?
The Companies Act 1993 is New Zealand’s core piece of corporate legislation. The Act recognises that the taking of business risks is legitimate and that, in matters of business judgement, directors are permitted a wide discretion. However, in order to provide protection for shareholders and creditors against the abuse of management power, directors are also subject to a number of duties. If a director is found to have breached any of these duties they may be personally liable for any loss they caused.
The New Incorporated Societies Act
In April 2022, the Incorporated Societies Act 2022 came into force, replacing the 114 year old Incorporated Societies Act 1908. The new Act is intended to modernise incorporated societies by setting out a framework of basic governance, legal and accounting obligations and to promote trust and confidence in societies. In particular, there is a focus on societies being run by, and being accountable to, their own members who are all working to achieve a stated purpose (and not for private gain).
Personal liability risk
A recent case heard by the Employment Relations Authority serves as a reminder that individuals, officers of companies and partnerships (including anyone who is able to exercise significant influence over the management or administration of these entities) can be held personally liable if the business breaches minimum employment law standards. e.g. fails to pay wages, holiday pay etc.
Covid-19: Help for Small Business
The Government has announced a Small Business Cashflow Loan Scheme, with applications open now until 12 June 2020 (at this stage).
Covid-19: Commercial Leases - Rental
We have been approached by a number of Landlords and Tenants querying what their Tenant’s obligation to pay rental is during the lock down.
This will depend on the terms of your lease..
