Summarised by Centrist
The government is planning to drop the requirement for company directors to publicly list their home addresses on the Companies Register. Instead they will allow an alternative address, such as a business or lawyer’s address to be used instead.
Commerce and Consumer Affairs Minister Andrew Bayly, who has championed this reform since his time in Opposition, is set to introduce a bill early next year as part of a broader overhaul of the Companies Act 1993. Alongside this, Bayly is pushing for the adoption of digital IDs for directors to better link individuals with the companies they manage, combat fraudulent practices like “phoenixing,” and improve transparency across the board.
Phoenixing is when a director of a failing company starts a new one to avoid debts and obligations from the old company. This new company might even use a similar name, which can confuse creditors and customers. Laws against phoenixing aim to stop this practice and protect stakeholders from being misled.
Bayly also aims to expand the use of the New Zealand Business Number (NZBN) to enhance identity verification, prevent scams, and drive digitalisation and productivity within the business sector. Public feedback will be sought once the bill reaches Parliament, offering a chance for further input on these changes.
