The Commerce Select Committee is currently considering submissions on the Companies and Limited Partnerships Amendment Bill. The Bill incorporates a number of proposed reforms which have been on the Government's agenda for some time, including:
criminalising the breach of certain directors' duties;
prohibiting companies which are subject to the Takeovers Code from undertaking long-form amalgamations under Part 13 of the Companies Act and various changes to better align the court process for schemes of arrangements or amalgamations under Part 15 of that Act with the Takeovers Code requirements; and
tightening requirements around company registration, including a proposal to require all New Zealand registered companies to have a resident agent if they do not have a director who lives in either New Zealand or an "enforcement country".
Submissions closed on 6 September 2012 and the Commerce Select Committee is due to report back on the Bill by 24 January 2013. We expect the Bill to be brought into force by mid-2013. We will keep you updated with further developments.
Further information on this Bill is available in our earlier client update: Submissions called for on legislation to criminalise breaches of directors’ duties and to better align schemes process with Takeovers Code requirements.