New NZX code gives significant boost to shareholder rights

The updated NZX Corporate Governance Code, released this morning, has gathered strength as it went through the process. It significantly advances shareholders' rights and achieves much closer alignment with the Financial Markets Authority corporate governance handbook.

The new Code will apply for all reporting periods from 1 October 2017, meaning that the first issuers required to report against it will be those with a 31 December balance date. Earlier adoption is available at will.

This is the most significant upgrade since the original Code was published in 2003 and – although some matters have been left to the broader review now underway of the NZX's Listing Rules – it represents a big step forward, particularly in the disclosure area and in the promotion of shareholder participation and democracy.