Running a company is no small feat. While serving as a company director is rewarding, it is not always smooth sailing. Sometimes, you and your co-directors may have disagreements over company management or misconduct. In such situations, you may wonder if legal action against your fellow director is an option. This article will provide an overview of when you, as a company director, can take legal action against another director. <\/p>\n\n\n\n
In New Zealand, company directors must uphold the overarching duties imposed by the Companies Act 1993<\/a><\/em>. As a director, your duties include:<\/p>\n\n\n\n Prior to taking legal action against another director, you should first attempt to resolve your issues internally. Internal resolution may involve raising your concerns at a board meeting or opting to negotiate or mediate with your fellow director. This method is a beneficial first step as it aids in preserving your relationship with other directors and can help maintain the company\u2019s reputation. Internal resolution allows the company to continue operating smoothly while managing your dispute. <\/p>\n\n\n\n If you wish to send a letter, you should engage a lawyer to help you clearly set out your legal rights and obligations.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
Breaching your director’s duties is a civil offence that brings significant penalties and may trigger legal proceedings.<\/p>\n\n\n\nInternal Resolution and Board Consultation <\/h2>\n\n\n\n
You may also want to send a legal letter requesting your fellow director to cease their actions. Your letter should include:<\/p>\n\n\n\n\n