Recent Company Law Reform      in New Zealand                 Steven Condie                 Senior SolicitorMinistry of Bu...
Introduction• Challenges to New Zealand’s company registration system• Companies and Limited Partnerships Amendment Bill  ...
Challenges Facing New Zealand,               and Responses• Misuse of New Zealand-registered companies• Implementation of ...
Companies and Limited Partnerships            Amendment Bill• Requirement for all companies to have a New Zealand-resident...
Takeovers and Directors’ Duties• Prohibiting companies under Takeovers Code from  amalgamating under Companies Act• Crimin...
Resident Agents• Bill as drafted required resident agent for all companies• Responsible for ensuring compliance with admin...
Resident Director• All New Zealand companies to have director who lives in New  Zealand or Australia• If Australian-reside...
Enhanced Registrar Powers• Confirm or correct existing information held on Register• Details of ultimate holding company• ...
Further Policy Directions• Beneficial ownership and control• Nominee directors• Open-ended powers of attorney• Financial s...
Conclusions• Concerted efforts by policy and law-makers• An unattractive destination for those wishing to misuse New  Zeal...
Upcoming SlideShare
Loading in …5
×

New Zealand | Synopsis on Law Reform (Steven Condie)

556 views
472 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
556
On SlideShare
0
From Embeds
0
Number of Embeds
246
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

New Zealand | Synopsis on Law Reform (Steven Condie)

  1. 1. Recent Company Law Reform in New Zealand Steven Condie Senior SolicitorMinistry of Business, Innovation and Employment 1
  2. 2. Introduction• Challenges to New Zealand’s company registration system• Companies and Limited Partnerships Amendment Bill 2
  3. 3. Challenges Facing New Zealand, and Responses• Misuse of New Zealand-registered companies• Implementation of Financial Action Task Force (FATF) recommendations• Pressure on New Zealand capital markets• Financial Markets Authority and regulation of financial service providers• AML/CFT legislation• Financial Markets Conduct Bill• Companies and Limited Partnerships Amendment Bill 3
  4. 4. Companies and Limited Partnerships Amendment Bill• Requirement for all companies to have a New Zealand-resident agent• Enhanced powers for the Registrar• New rules concerning takeovers• Criminalisation of certain directors’ duties 4
  5. 5. Takeovers and Directors’ Duties• Prohibiting companies under Takeovers Code from amalgamating under Companies Act• Criminal offences for: – Intentional breach of duty to act in good faith and in the best interests of the company – Knowing breach of duty to act or permit the company to act in a way that is seriously detrimental to creditors• Some concerns about these proposals 5
  6. 6. Resident Agents• Bill as drafted required resident agent for all companies• Responsible for ensuring compliance with administrative requirements• Parliamentary Select Committee concludes of limited assistance 6
  7. 7. Resident Director• All New Zealand companies to have director who lives in New Zealand or Australia• If Australian-resident, must be a director of an Australian company• Policy will affect less than 1% of companies, many of which are shell companies 7
  8. 8. Enhanced Registrar Powers• Confirm or correct existing information held on Register• Details of ultimate holding company• “Flag” companies where concerns about bona fides• Remove companies where: – Inaccurate information intentionally provided – Serious or persistent breach of the Companies Act• Prohibit individuals from acting as directors 8
  9. 9. Further Policy Directions• Beneficial ownership and control• Nominee directors• Open-ended powers of attorney• Financial service providers 9
  10. 10. Conclusions• Concerted efforts by policy and law-makers• An unattractive destination for those wishing to misuse New Zealand-registered companies• Retain our rating as one of the easiest places to do business• Remain a trusted jurisdiction 10

×