Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Minister urged to reject NZX plans

Minister urged to reject NZX plans

Commerce Minister Lianne Dalziel should reject plans from the NZX to apply prescriptive governance rules to companies listed on the New Zealand Stock Exchange, says National Party Associate Commerce spokesman John Key.

"Prescriptive regulations such as those being floated by the NZX may be applicable in a large and deep corporate environment such as the United States where separation of ownership and control is at its most extreme.

"But in a small and transparent environment like New Zealand, rules such as these will only choke off the number of companies entering the public ownership arena.

"They'll also reduce what is already a shallow pool of independent directors currently available, with few tangible benefits," Mr Key says.

"I am surprised the exchange feels such rules are necessary in NZ given the lack of evidence that such prescription is warranted, the size and existing transparency of our market, and the exchange's documented desire to see a growth in the secondary AX market.

"Shareholders are likely to be better served by a regime of voluntary best practise, so that directors have time to perform their real function of maximising shareholder value and leave it to investors to assess the risks that different approaches might have on individual corporate performance," says Mr Key.

"New Zealand's primary focus has to be on encouraging more companies to expand and grow without having the private equity markets as their sole source of capital.

"This objective can be achieved while maintaining the integrity of our market without such prescriptive legislation that at best might with be expensive and time absorbing - and at worst may provide a false sense of security for shareholders," says Mr Key.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news