Directors’ Duties Archives

Former Port of Auckland CEO loses appeal against health and safety conviction

August 5, 2026

Company Law, Directors’ Duties, Employment Law, Health and Safety, Workplace Safety, WorkplaceLaw

The former chief executive of Port of Auckland Ltd (POAL), Tony Gibson, lost his appeal against his conviction under the Health and Safety at Work Act 2015 (HSWA) following the night shift death of a port worker, Pala’amo Kalati. Mr Kalati was crushed by a container while helping to unload a container ship. The High Court confirmed the District Court’s decision on the duties of an officer of a large organisation under the HSWA.

Failure to take steps to minimise risk

The High Court^[1] confirmed that Mr Gibson had failed to take the steps that a reasonable officer in his position would have taken to minimise the risk of an accident occurring. The court agreed with the District Court that Mr Gibson was personally aware of the risks associated with loading and unloading containers, that the company’s documentation containing its rules for handling containers was unclear, and that the company had inadequate systems in place to determine whether its workers were complying with its rules.

The court also agreed that Mr Gibson should have been aware of the serious risks associated with handling containers following the 2018 death of one of the port’s workers.

The High Court also upheld the District Court’s decision to impose a fine of $130,000 on Mr Gibson and to order him to pay a further $60,000 in court costs.

The court’s decision confirms several principles relating to the duties of company officers under the HSWA, which were set down in the District Court’s decision. These are:

It is not enough for a company officer to ensure that systems are in place to protect workers’ safety. They must also ensure that work practices are monitored for compliance. They must ensure that they are aware of how their staff actually carry out their work as opposed to how they are supposed to do so, and
A company officer cannot simply delegate their health and safety responsibilities to someone else in their company and rely on that person to ensure compliance with health and safety rules, without proper enquiry that the organisation’s systems are adequately addressing health and safety risks. They must critically examine information provided to them by their staff relating to health and safety. They must also create mechanisms to verify the information they are receiving.

Maritime New Zealand, the government body with responsibility for health and safety prosecutions relating to ports, only charged POAL’s chief executive officer. The High Court observed that there were a number of different people at the port company, including directors and managers, who had obligations under the HSWA who could also have been charged.

This decision emphasises that both those involved in governance and operational matters in a large organisation may have personal health and safety obligations.

If you have any concerns about your health and safety obligations as a company director or senior employee, please don’t hesitate to contact us.

^[1] Gibson v Maritime New Zealand [2026] NZHC 813.

DISCLAIMER: All the information published in Fineprint is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Fineprint may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2026. Editor: Adrienne Olsen. E-mail: [email protected] Ph: 029 286 3650

Consequences of ‘accidental directorship’

August 5, 2026

Business Law, Company Law, Corporate Governance, Directors’ Duties, StartupAdvice, Startups, Venture Capital

Caution for investors, startup advisers and board observers

Startup companies often rely on advisers, investors and board observers to help guide their new businesses. This is a good thing, but it carries hidden risk.

If you are in one of these roles, in some circumstances, you can be treated as a director, even if you never formally agreed to the appointment. If this happens, it can expose you to personal liability.

Directors vs advisers: What’s the difference?

Directors are responsible for the overall governance and strategic direction of the business.

Directorship also comes with legal compliance under the Companies Act 1993. There are significant consequences for directors if things go wrong.

On the other hand, advisers and board observers typically provide strategic, non-binding guidance for the directors to take into consideration when making decisions.

In theory, this is a clear distinction. The line, however, can become blurred. What matters is what you do in practice, rather than your title.

How do people become accidental directors?

This is common in startups, where governance structures are still evolving and roles are often informal. Having said that, this is still a real risk for any company. Courts tend to focus on how you are fulfilling your role as an adviser or observer in practice. Warning signs include:

The board of directors regularly following your instructions or directions
Being involved in decision-making on the same level as directors, and/or
Exercising authority normally reserved for directors.

If these patterns develop, you may be seen as a deemed director.

Personal liability

Directors’ duties are personal. If a company gets into financial trouble, the directors are exposed to personal liability, and in some instances may be required to personally contribute to company debts. This risk doesn’t just apply to those formally appointed. If you are treated as a director in substance, you may carry this risk without even realising you’ve taken it on.

A risk area

Board observers and startup advisers are particularly exposed because their role sits very close to the line. For example, an observer may:

Attend meetings and receive board papers
Provide input on strategy or decisions, and/or
Represent investor interests.

That’s fine, but the risk increases where:

You participate in decision-making on significant matters
The board tends to follow your recommendations
Your role is not clearly recorded as ‘observer only,’ and/or
You (or your investor) have significant control or approval rights.

Over time, what starts as ‘advice’ can start to look like decision-making.

This is one of those areas where things can drift without anyone noticing. Everyone is acting in good faith, wanting the business to succeed, but the legal position gradually shifts. If you are involved in a startup as an adviser, investor or observer, it’s worth asking yourself:

Am I just advising, or am I influencing decisions?
Does the board treat my input as optional or as direction?
Is my role clearly documented and understood?

Small changes in how you operate can make a big difference.

Be careful

Being an adviser or board observer is often valuable and rewarding, and is of great benefit to startups. However, there are real risks with these roles that are not always obvious. If your involvement crosses the line into decision-making or control, the law may consider you as a director, exposing you to all the responsibility and possible personal liability that comes with that title.

It pays to be clear about your role from the outset and to keep checking that your involvement hasn’t crept further than intended. If you’re not sure where that line sits in your situation, it’s a good time to get legal advice to help avoid unintended consequences.

Directors’ Duties