Company Law Criminalisation Changes Progress

by Desk Editor on Wednesday, June 18, 2014 — 8:48 PM

After a long delay changes to company law which creates new criminal offences for directors behaving badly have made progress in Parliament.

The committee stage of the Companies and Limited Partnerships Amendment Bill was completed on a voice vote after it was reported back from select committee a year ago. The Government introduced further changes to the bill last week.

Commerce Minister Craig Foss said the changes to the criminalisation of some directors duties if they act dishonestly were part of the wrestling to get the definition right.

Many company directors had expressed concern the original drafting would have criminalised legitimate risk taking and entrepreneurship. Foss said he felt the latest drafting captured those who acted dishonestly with intent and still allowed honest directors to carry on working.

Oppostion MPs supported the bill which also requires registered companies to have a resident agent if no director lives here or in an approved jurisdiction. However they were unhappy about how long it had taken to get the bill through Parliament.

MPs returned to the committee stage of the Victims’ Orders Against Violent Offenders Bill.

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