Lower company compliance costs ahead

The Regulatory Systems (Commercial Matters) Amendment Bill has now passed and will generally come into force two months after it receives the Royal Assent (near end of May).

It includes provisions which will reduce compliance costs for companies and for entities subject to the Financial Markets Conduct Act 2013 (FMCA).

Key changes

• Removing the requirement for listed issuers to send notices of financial assistance to all of their shareholders. Instead they will be able to provide the notice to NZX for release.
• Allowing the board not to convene an AGM where there is no business requiring an AGM and it is not in the company's interests to hold one.
• Removing the requirement for "large" companies to prepare or have audited financial statements where the company is covered by group financial statements prepared by the parent. The need to prepare an annual report for such companies will also be removed where this is supported by 95% of shareholders.