Select Committee Report on the Companies and Limited Partnerships Amendment Bill

On 11 December 2012, the Select Committee (Commerce Committee) reported back on the Companies and Limited Partnerships Amendment Bill. The Bill contains significant changes for companies, company directors and limited partnerships. This update provides a brief summary of the main changes made by the Select Committee.

The Bill proposes:

• Companies and Limited partnerships must have a director or general partner who lives (or for a corporate general partner, is incorporated) in New Zealand or a prescribed country. The main difference between the amended Bill and the original is that the resident agent concept has been dropped in favour of a more prescriptive requirement for directors and general partners.
• Companies must include ultimate holding company information in annual reports. This will not apply to limited partnerships.
• Criminal sanctions for directors who breach their duties to act in the best interests of the company and not to trade recklessly. The Select Committee has not made changes to the Bill but has sought more input, given submissions on the potential for discouraging legitimate risk taking ... READ MORE

Released by Minter Ellison Rudd Watts - 13 December 2012