Thursday, May 3, 2012

The New Zealand company law

Came across a statement of the NZ law on companies.


A director of a company must not –


1. Agree to the business of the company being carried on in a manner likely to create a substantial risk of serious loss to the company's creditors; or


2. Cause or allow the business of the company to be carried on in a manner likely to create a substantial risk of serious loss to the company's creditors.


However


‘there is no obligation on directors to immediately cease trading as soon as the company becomes insolvent’.


Pretty weird.