Companies
must have at least one director who lives in New Zealand. The emphasis is on the depth of ties to New
Zealand the High Court ruled in approving as local a director who spent as
little as one fifth of the year in the country last year.
Since 2015 all companies must have at
least one director within the jurisdiction of New Zealand courts to ensure
accountability for company obligations.
About one per cent of New Zealand companies did not have a local
director when the new rule came into effect.
John Malcolm Carr challenged the Registrar of Companies refusal to
accept him as a local director for his many commercial interests. Enquiries found Mr Carr had been physically
in New Zealand in 2015 for only 69 days, 2014 (108 days) and 2013 (136
days). The Registrar applied the tax
residency rule as a guide; any person spending more than 183 days a year
outside New Zealand is not “living” in New Zealand.
Justice Simon France said the need for a
local director is based on enforcement needs.
More weight should be given to ties with this country than to days spent
within New Zealand. He ruled Mr Carr had
sufficient ties. Mr Carr owns two
residences in New Zealand, his partner does not travel with him when overseas,
his primary care doctor is a New Zealand GP, he is a New Zealand taxpayer and
voter and has all the attachments to local life seen with many citizens: local
bank accounts and credit cards, a local phone number, drivers licence, firearms
licence together with membership of sundry local organisations.
re
Carr – High Court (7.07.16)
16.105