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Your legal responsibilities
Incorporating a limited liability company provides the legal framework for doing business in New Zealand.
It is important to be aware that operating as a limited liability company brings with it obligations for the company and its directors and shareholders.
These obligations are set out in the Companies Act 1993, and are also summarised here.
![[icon] Further information.](./medicons/med_icon_furtherinfo.gif "[icon] Further information.")
Further information
Legislation
Companies are subject to a wide range of legislation. A summary of legislation that companies should be aware of is provided here.
Obligations as a director
Directors owe duties to the company, to its shareholders, and to others dealing with the company. It is essential directors are aware of what their responsibilities will be before they consent to become a director for a company.
Shares and shareholders
It is very important to recognise the distinction between shareholders and directors. A shareholder is a person who holds shares within a company. The total number of shares can be divided into one or more share parcels for one or more shareholders.
Maintaining & keeping records
The Companies Act requires that every company keep and maintain certain records.
Financial reporting
Is your company required to file financial statements in accordance with the requirements of the Financial Reporting Act 1993?
Enforcement
The Ministry of Economic Development's National Enforcement Unit investigates and, where appropriate, prosecutes offences under various legislation on behalf of the Official Assignee, the Registrar of Companies and the Registrar of Motor Vehicle Traders.
![[link to the New Zealand government business website].](http://www.companies.govt.nz/cms/images/header-images/footer-images/link-to-the-new-zealand-government-business-website/image_thumb)
![[link to the New Zealand government website].](http://www.companies.govt.nz/cms/images/header-images/footer-images/link-to-the-new-zealand-government-website/image_thumb)
![[link to the New Zealand Legislation website].](http://www.companies.govt.nz/cms/images/header-images/footer-images/link-to-the-new-zealand-legislation-website/image_thumb)