On 13 October 2011, Simon Power introduced the Companies and Limited Partnerships Amendment Bill (the Bill) which proposes to change the legislative framework around the operation and penalties of companies, company directors and limited partnerships. Power explained in a press release that the Bill aims to uphold New Zealand’s international reputation for being one of the most trusted places to do business. A few of the key changes are as follows:
- registered New Zealand agent: the Bill requires that each company registered in New Zealand must have a New Zealand resident agent if they do not have a domestic director or one living in an “enforcement country” (listed in the regulations);
- criminal penalties for breach of director’s duties: the Bill will criminalise certain breaches of duties, for example, to act in good faith and in the best interests of the company, but only where the director knows that the breach will be serious; and
- powers of the registrar widening: the registrar of companies will be granted greater investigative powers and the ability to remove companies from the Register. Public warnings of suspect entities will also be administered by the registrar.