New Zealand Law
Have New Zealand Law Questions? Ask a Lawyer Online.
There are obligations on a shareholder to know the financial information and the state of the company. So it is prudent to ask questions and look at the books of the company before you take this on. Having said that, provided you do take the step of doing some due diligence on the state of the comapny you are not really at serious risk unless you participate in reckless trading of the company or acting when you know the company is insolvent. In those situations you can become personally liable but the risks are not high, especially if you have taken the steps to check the state of the company