{"id":212499,"date":"2021-11-30T19:20:04","date_gmt":"2021-11-30T06:20:04","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=212499"},"modified":"2023-12-12T12:45:42","modified_gmt":"2023-12-11T23:45:42","slug":"live-australia-can-be-director-new-zealand-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/","title":{"rendered":"I Live in Australia. Can I Be a Director of a New Zealand Company?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">A <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/business-structures\/can-a-permanent-resident-or-non-citizen-be-a-company-director-in-new-zealand\/\">company director<\/a> is someone who you appoint to manage your company\u2019s business and affairs. A good director can ensure your company meets its goals and remains profitable in the market. Once appointed in this role, you have fiduciary obligations and responsibilities to fulfil to run your company smoothly and act in its best interests. Some New Zealand companies may have directors that do not reside in New Zealand. This article will outline whether or not you can be a New Zealand director while living in Australia, how to become a director and your duties as a director.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can You Live in Australia and Be a Director of a New Zealand Company?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you live in Australia, you can be a director in New Zealand even if you are not a citizen or permanent resident. <\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">In New Zealand, a company must have:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">at least one director who lives in New Zealand; or<\/span><\/li>\n<li><span style=\"font-weight: 400\">a director who lives in Australia and is the director of an incorporated Australian company.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">If this company already has a director who fulfils one of the above requirements, you can be a director even if you do not live in New Zealand.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Constitutes You to Be Living in New Zealand?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">To be considered as living in New Zealand, you must have lived in New Zealand for at least 183 days in the last 12 months.<\/span> Some f<span style=\"font-weight: 400\">actors that may be r<\/span>elevant<span style=\"font-weight: 400\"> when determining whether you reside in New Zealand are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">your connection and ties to New Zealand;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">how much time you spend in New Zealand;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">manner of living in New Zealand;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">your activities in New Zealand and;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">how you will fulfil your responsibilities of the company you want to be a director in.<\/span><\/li>\n<\/ul>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/21140438\/NZ-Startup-Manual-251x360-2.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ Startup Manual: A Legal Handbook For Founders<\/div>\n            <div class=\"body-text\">\n                <p>Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/NZ-Startup-Manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 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       } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\">Circumstances Under Which You Cannot be a Director<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Although you can be a director of a New Zealand company while living in Australia, there are specific reasons under which you may not be able to become a director in New Zealand (which also applies in respect of New Zealand resident directors). <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">These reasons are if you are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">under 18;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">bankrupt;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">someone convicted of a crime involving dishonesty in the last five years;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">subject to a property order;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">prohibited from being a director under the law;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">prohibited by the Registrar of Companies; or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">l<\/span>egally <span style=\"font-weight: 400\">prohibited from <\/span>involving yourself with the<span style=\"font-weight: 400\"> management of a company of a limited partnership.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Furthermore, there may be additional restrictions in the company&#8217;s constitution as to whether you can be a director or not.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Can You Be Appointed as a Director?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Any natural person can be a director. Under the <em>Companies Act<\/em>, the shareholders will need to pass a resolution approving <a href=\"https:\/\/legalvision.co.nz\/corporations\/appoint-or-remove-a-company-director\/\">the appointment of a director<\/a>. To appoint a director, you will need to consult the company constitution or <\/span><a href=\"https:\/\/legalvision.co.nz\/corporations\/what-is-a-shareholders-agreement\/\"><span style=\"font-weight: 400\">shareholders agreement<\/span><\/a><span style=\"font-weight: 400\"> to determine whether y<\/span>ou need to meet <span style=\"font-weight: 400\">additional or specific requirements or approvals. In addition, y<\/span>ou cannot have a successful appointment<span style=\"font-weight: 400\"> unless:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">you provide written consent to be a director;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">you have certified that you are not disqualified from being a director of a company<\/span><\/li>\n<\/ul>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">Once you have been appointed as a director, the company will need to update the Companies Register. The company must upload this update within 20 working days of your appointment.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Your Responsibilities as a Company Director<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Once you<\/span>r appointment as a <span style=\"font-weight: 400\">company director <\/span>is complete<span style=\"font-weight: 400\">, you will have various responsibilities and legal obligations such as:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.nz\/employment\/good-faith-obligation\/\">acting in good faith<\/a> and the company&#8217;s best interests;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">complying with the <em>Companies Act<\/em>;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">ensuring that the company can pay its debts and is financially sound;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">taking reasonable care and skill in your duties;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">avoiding risks of severe loss to the company\u2019s creditors; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">exercising your power as director for a proper purpose.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">While executing your general duties as a new director, you must ensure that you fulfil them to the best quality and not dishonestly; otherwise, you may be subject to considerable penalties.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You can be a director of a New Zealand company while living in Australia if you are a director of an Australian company. To be appointed as a company director, typically, the shareholders will need to pass an ordinary resolution approving your appointment (subject to any specific requirements in the company\u2019s constitution and shareholders agreement). Once you<\/span>r appointment and registration are successful<span style=\"font-weight: 400\">, you must execute your many responsibilities in good faith and honesty. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help with becoming a director, our experienced <\/span><a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\/\"><span style=\"font-weight: 400\">business lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.nz\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1638250960399\"><strong class=\"schema-faq-question\"><strong>How can I become a director in New Zealand?<\/strong><\/strong> <p class=\"schema-faq-answer\">To be appointed as a director for a New Zealand company, typically, the shareholders will need to pass an ordinary resolution approving your appointment. You will also need to check the company\u2019s constitution and shareholders agreement for any specific approval requirements.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1638250968437\"><strong class=\"schema-faq-question\"><strong>Can I be a director even if I live in Australia?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, in most cases, you can be a director of a New Zealand firm while being an Australian citizen or resident, provided you are also a director of an Australian company. So long as you are above 18, not bankrupt, and are not banned from being a director.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/212499\" \/>            <input value=\"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"I Live in Australia. Can I Be a Director of a New Zealand Company?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A company director is someone who you appoint to manage your company\u2019s business and affairs. A good director can ensure your company meets its goals and remains profitable in the market. Once appointed in this role, you have fiduciary obligations and responsibilities to fulfil to run your company smoothly and act in its best interests.<a href=\"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/\">Continue reading <span class=\"sr-only\">&#8220;I Live in Australia. Can I Be a Director of a New Zealand Company?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13316,"featured_media":105,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1288,202036,216819,218413,202188,203117","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[4],"tags":[59,498,499,500],"class_list":["post-212499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-structures","tag-shareholders-agreement","tag-company-director","tag-appoint-director","tag-remove-director"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>I Live in Australia. 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Can I Be a Director of a New Zealand Company?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.nz\/#website","url":"https:\/\/legalvision.co.nz\/","name":"LegalVision New Zealand","description":"LegalVision is a commercial law firm in NZ with a commitment to innovation","publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/legalvision.co.nz\/#organization","name":"LegalVision New Zealand","url":"https:\/\/legalvision.co.nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","width":400,"height":400,"caption":"LegalVision New Zealand"},"image":{"@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalVision","https:\/\/x.com\/LegalVision_law","https:\/\/www.linkedin.com\/company\/legalvision-group"]},{"@type":"Person","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/e2c5d60479c8fa82bd33c2862cc394d1","name":"Zaakirah Nabi","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","caption":"Zaakirah Nabi"},"description":"Zaakirah is a Legal Content Writer at LegalVision with particular expertise in Corporate and Commercial law.","url":"https:\/\/legalvision.co.nz\/author\/zaakirahnabi\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/#faq-question-1638250960399","name":"How can I become a director in New Zealand?","acceptedAnswer":{"@type":"Answer","text":"To be appointed as a director for a New Zealand company, typically, the shareholders will need to pass an ordinary resolution approving your appointment. You will also need to check the company\u2019s constitution and shareholders agreement for any specific approval requirements.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/#faq-question-1638250968437","name":"Can I be a director even if I live in Australia?","acceptedAnswer":{"@type":"Answer","text":"Yes, in most cases, you can be a director of a New Zealand firm while being an Australian citizen or resident, provided you are also a director of an Australian company. So long as you are above 18, not bankrupt, and are not banned from being a director.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/212499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13316"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=212499"}],"version-history":[{"count":11,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/212499\/revisions"}],"predecessor-version":[{"id":225400,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/212499\/revisions\/225400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/105"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=212499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=212499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=212499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}