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Companies (Directors Duties) Amendment Bill

Introduced on Sept 23. The member’s bill in the name of Labour’s Duncan Webb seeks to makes clear a company director may take actions that take into account wider matters other than the financial bottom-line. This may include matters such as the principles of te Tiriti, environmental impacts, good corporate ethics, being a good employer, and the interests of the wider community. After being put on hold for a year, the bill was put forward for first reading on Sept 21, debate was interrupted with National indicating opposition. First reading completed on Nov 9 with National and Act opposed sent to the Economic Development, Science and Innovation Committee. Reported back on May 8 with evenly divided committee unable to agree on whether the bill should proceed, but recommending changes including removing the list of examples of factors directors may take into account. Second reading on June 7 with the bill’s sponsor (now Camilla Belich) indicating amendments would be introduced in the committee stage. National and Act opposed. Committee stage postponed to allow Belich time to prepare an SOP. Committee stage completed on July 16 with the bill amended to say “to avoid doubt” directors may take other factors than profit into account when making decisions. Third reading completed on Aug 1 with National and Act opposed.


Companies (Directors Duties) Amendment Bill.