By Warren Bygrave - 21 Mar 2013
If you are a director of a New Zealand registered company or if
you are thinking of setting up a company in New Zealand, you need
to be aware of some important changes proposed by the Companies and
Limited Partnerships Amendment Bill.
The Bill intends to tighten rules around company directors and
company registration to avoid misuse of New Zealand's very
straightforward company registration process. Some of the
changes proposed include:
- Each company registered in New Zealand must have a New
Zealand-resident director or agent. Certain exemptions will
apply to overseas jurisdictions with reciprocal enforcement or
information sharing arrangements with New Zealand (such as
Australia).
- The Registrar of Companies will have expanded powers, including
the power to correct information; "flag" companies as under enquiry
and in certain circumstances, remove a disqualified or prohibited
person or ban a person from involvement in a company.
- The introduction of criminal sanctions for directors who commit
a serious breach of their duties to act in good faith and in the
best interests of the company or who are involved in reckless
trading.
The Bill is currently awaiting its second reading and is
expected to come into force later this year. Although
existing companies will have a transitional period to comply with
additional requirements, company directors need to be aware of the
impending changes and start planning for them now.
Contact
Warren
Bygrave