{"id":216819,"date":"2022-08-09T16:58:44","date_gmt":"2022-08-09T03:58:44","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=216819"},"modified":"2024-05-20T17:34:27","modified_gmt":"2024-05-20T04:34:27","slug":"how-become-company-director-nz","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/how-become-company-director-nz\/","title":{"rendered":"How Do I Become a Company Director in New Zealand?"},"content":{"rendered":"\n<p>If you wish to become a company director, there is important legal information that you need to know. Company directors have a number of rights and obligations in New Zealand law, and not everyone is able to be a director. This article will outline:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>what a company director is:<\/li>\n\n\n\n<li>how someone becomes a company director;<\/li>\n\n\n\n<li>what obligations directors have; and<\/li>\n\n\n\n<li>what criteria you need to meet to become a director.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Company Director?<\/h2>\n\n\n\n<p>A <a href=\"https:\/\/legalvision.co.nz\/startups\/founder-director-shareholder\/\">company director<\/a> is someone who is in charge of a company. They are the leader of the company and make important business decisions. You will have a few different duties as a director. In particular, you will likely have to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>create directional policies for the company;<\/li>\n\n\n\n<li>ensure that the company is fiscally sound;<\/li>\n\n\n\n<li>hold company meetings with shareholders and other important parties; and<\/li>\n\n\n\n<li>create relationships with people who can assist the business.<\/li>\n<\/ul>\n\n\n\n<p>Your company constitution can set out additional roles and responsibilities of directors if the company wishes to specify these.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Do I Become a Company Director?<\/h2>\n\n\n\n<p>It is a requirement that every company will have at least one director. The Companies Register records the details of all companies\u2019 directors. Therefore, this information is available publicly.&nbsp;<\/p>\n\n\n\n<p>You will need to register yourself as a director when you register the company. Your details as a director will be available on your company account. The details you need to provide include your:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>full legal name;<\/li>\n\n\n\n<li>date of birth;<\/li>\n\n\n\n<li>residential address; and<\/li>\n\n\n\n<li>email address or other contact information.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>You can update these details at any time if there has been a change of directors or if a new director has joined the company. You may also include some of these details in the company constitution. <\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Notably, you will have to personally complete a consent form and return this to the Companies Office to formalise your registration.<\/p>\n<\/div>\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 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within 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These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>acting honestly and in good faith;<\/li>\n\n\n\n<li>using directorial power for a proper purpose;<\/li>\n\n\n\n<li>acting in the best interests of the company;<\/li>\n\n\n\n<li>taking reasonable care, skill, and diligence at all times when acting as director;<\/li>\n\n\n\n<li>ensuring that the company does not become indebted or financially unstable; and<\/li>\n\n\n\n<li>avoiding substantial risks that may result in serious consequences for the company.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Again, you may have further obligations outlined in your company constitution.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Criteria Do I Need to Meet to Be Able to Be a Director?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Living in New Zealand<\/h3>\n\n\n\n<p>All New Zealand companies must have at least one director who <a href=\"https:\/\/legalvision.co.nz\/business-structures\/live-australia-can-be-director-new-zealand-business\/\">lives in New Zealand or Australia<\/a>. If they live in Australia, they need to be the director of a company incorporated in Australia.&nbsp;<\/p>\n\n\n\n<p>To \u201clive\u201d in New Zealand, you will need to have been present in New Zealand for at least 183 days within a 12-month period. This means that you would have needed to live in New Zealand for at least 6 of the last 12 months. You do not need to be a New Zealand citizen.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Living Outside New Zealand<\/h3>\n\n\n\n<p>If you do not meet these requirements and still wish to become a director, you may still be able to do so. However, you will need to provide further information to justify your connection in order for the Companies Registrar to consider your application. This can be evidence showing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the time you spend in New Zealand;<\/li>\n\n\n\n<li>your connections and contributions to New Zealand;<\/li>\n\n\n\n<li>why you do not reside in New Zealand more permanently; or<\/li>\n\n\n\n<li>where you live when you are in New Zealand.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Other Criteria&nbsp;<\/h3>\n\n\n\n<p>There are a few reasons that you cannot be a director. These include if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>are a minor under 18 years old<\/li>\n\n\n\n<li>are or have been bankrupt;<\/li>\n\n\n\n<li>have been prohibited from being a director of an Australian company;<\/li>\n\n\n\n<li>have been convicted of a crime in the last five years, especially those involving dishonesty; or<\/li>\n\n\n\n<li>have been banned from managing a company by any organisation, such as the Financial Markets Authority.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Additionally, there are a few less commonly used criteria that would exclude someone from being a director in the <em>Companies Act<\/em>. These generally relate to tax offences.&nbsp;<\/p>\n\n\n\n<p>If you cannot be a company director due to bankruptcy, your name will appear on the Companies Register and the Insolvency Register. The Company Registrar will be able to see this if you apply to be a company director.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>If you are a company director, but are not sure how to fulfil your role, there are some <a href=\"https:\/\/www.business.govt.nz\/business-performance\/governance\/governance-overview\/\">great assets online<\/a> to help you improve your skills as a company director.<\/p>\n<\/div>\n\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<h2 class=\"wp-block-heading\">Key Takeaways&nbsp;<\/h2>\n\n\n\n<p><a href=\"https:\/\/legalvision.co.nz\/corporations\/maximum-number-directors\/\">Company directors<\/a> hold a position of significant power, so they also have a number of roles and responsibilities. Not everyone can be a company director. If you wish to become a company director, then you will need to register with the Companies Office.\u00a0<\/p>\n\n\n\n<p>If you need help with becoming a company director, our <a href=\"https:\/\/legalvision.co.nz\/corporate-lawyers-lp\">experienced corporate lawyers<\/a> 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 <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/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-1660015925705\"><strong class=\"schema-faq-question\">Can I become a company director of multiple companies?<\/strong> <p class=\"schema-faq-answer\">That depends. There may be something in your company constitution that prevents you from working for two businesses at one time. Additionally, you should consider all your obligations as a director, and manage any potential conflict of interest between your directorships.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1660015973981\"><strong class=\"schema-faq-question\">Do I need to update my Companies Register details if I change address or name?<\/strong> <p class=\"schema-faq-answer\">Yes, all personal details that are on the Companies Register must be accurate. If you change your name or address, you will need to ensure that you update these.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you wish to become a company director, there is important legal information that you need to know. Company directors have a number of rights and obligations in New Zealand law, and not everyone is able to be a director. This article will outline: What is a Company Director? A company director is someone who<a href=\"https:\/\/legalvision.co.nz\/corporations\/how-become-company-director-nz\/\">Continue reading <span class=\"sr-only\">&#8220;How Do I Become a Company Director in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13318,"featured_media":215614,"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":"204166,209085,208142,207623,207208,2439","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[14],"tags":[24,29,30,498,545,1333],"class_list":["post-216819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-startup","tag-director","tag-company","tag-company-director","tag-directors-duties","tag-companies-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do I Become a Company Director in NZ? | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"Do you wish to become a company director in New Zealand? 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