New Zealand directors face increased risk of liability for corporate actions.
Directors in New Zealand face increased risk of being held liable for corporate wrongdoing. The Companies Act 1993 initially sparked concerns about the impact on directorship, but these fears have largely not materialized. The liability provisions for directors have been added without a clear policy, adapting existing models to new regulatory issues. While some specific provisions have been widely discussed, there has not been a comprehensive study on the overall approach and consequences of director liability in New Zealand. The chapter provides an overview of New Zealand company law, the relationship between directors and companies, and the principles of general law that can hold directors accountable for their companies' actions.