Sunday, February 05, 2012
   
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Companies Act Reform

The past year has seen some excellent work on Companies Act reform, to increase accountability to shareholders and streamline trans-Tasman corporate relations. In June 2007, the consequences for director disqualification were extended to include prohibition from directing in other jurisdictions, and companies are now permitted to reduce annual report printing costs and encouraged to consider electronic distribution. In September, overseas companies in certain jurisdictions, such as Australia, will be exempt from some corporate information requirements, reducing compliance burdens. These measures and those in the related business law reform bills make the rules for doing business in New Zealand clearer and more consistent.

At present the Companies Act states that directors must, in almost all cases, act in good faith in the best interests of the company itself. I would also like to see our laws clarify that none of these requirements prevent directors from acting consistently with the interests of the environment, the workforce, or, where the company is wholly or substantially state-owned or controlled, in the wider interests of the nation.

I am considering a private member’s bill to clarify directors’ duties along these lines.
Labour Spokesperson for Justice
Labour Spokesperson for the Environment

Labour List MP Based in Ohariu
Authorised by Charles Chauvel, 103 Johnsonville Road, Johnsonville