What legal duties do I have as a company director?
- 05.07.2026
A potential investor has asked me to sign a non-disclosure agreement before I show my business plan, and separately I want them to sign one before I share more. I am not sure whether NDAs are actually enforceable or how strong they are. What should I look out for?
Non-disclosure agreements are enforceable in New Zealand as ordinary contracts if they are clear, and equitable duties of confidence may also protect information. A good NDA defines what counts as confidential information, states the permitted purpose for using it, sets out who can see it, limits the duration, requires return or destruction of materials and sets remedies. Be wary of definitions that are so wide that they cover public information, or that tie you into obligations without an end date. Investors often resist signing NDAs at the earliest stage, so a common approach is to share information gradually and keep the most sensitive details, such as source code or formulas, until later. Legal review is sensible if the information is valuable or the terms are one-sided.
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