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Some relief is coming down the line for directors who have “serious concerns” that their safety and that of their family members will be compromised if their home address is available online.
Labour MP Dr. Deborah Russell’s Member’s Bill is back from Select Committee with a recommendation by majority (New Zealand First being of the view that a more comprehensive approach is required) that it be passed subject to several amendments, the effect of which is to expand the Bill’s coverage.
The Bill is something of a placeholder as a more complete solution will be delivered through the Corporate Role-Holder Identifier regime now being developed by Commerce and Consumer Affairs Minister Andrew Bayly to be enacted through the Corporate Governance Amendment Bill.
Dr Russell had launched her Bill before the Government announced its planned changes, which she recognises will do the job more effectively, so has postponed the second reading of her Bill until early next year to avoid wasting Parliament's and officials’ time.
Her Bill’s protections would be available not automatically but by applying to the Registrar in the form of a statutory declaration “verifying that the public availability of (the director’s) residential address poses a threat to them or a person living with them”.
We consider the requirement for a statutory declaration is pedantic and unnecessary and are disappointed that the committee has stuck by it. We are pleased, however, that the director would no longer be required to make the application personally and could instead allow other people, such as a lawyer or accountant, to apply on their behalf.
We also generally support the committee’s other recommended changes.
Principal recommendations
- Directors will be allowed only one “alternative address” to protect against the possibility of multiple addresses being used to conceal the director’s identity.
- The redaction of the home address will now apply to other publicly available company documents – e.g., consent forms and annual returns – and to any documentation issued in relation to the initial registration of the company.
- Where a director is also a shareholder in the company, the protection will be applied to both roles, and the alternative address used in relation to any other shareholder who resides with the director.
- The Registrar can remove an alternative address where the director no longer wishes to use it or has ceased to be a director of the company and – in the case of co-habitants – where the person no longer lives with the director or withdraws consent for their residential address to be withheld.
Commencement date
If enacted, the Bill will come into effect as soon as regulations and IT changes can be made and in any event no later than one year after receiving Royal assent. The initial commencement date was three months after final enactment, but official advice was that this would not allow sufficient time to consult on the associated regulations and to operationalise them.
New Zealand has more than 650,000 directors, and more than 731,000 companies, so there is the potential for a large number of applications.
Related article: Companies Act to get much needed refresh
