Legislation update: Progress on bills to amend Charity and Company law

type
Policy and bills
author
By Institute of Directors
date
30 Sep 2022
read time
2 min to read
Legislation update: Progress on bills to amend Charity and Company law

Charities Amendment Bill 2022

Update 25 October 2022: Join a webinar on 22 November – A governance lens with Parry Field Lawyers and the IoD.

The consultation period has been extended until 9 December 2022. The new cut-off date for making a submission on the Bill is now 9 December 2022Find out how to make a submission. 

Note that the IoD will be making a submission focusing on these areas in the Bill:

  • enhancing regulatory decision-making requirements, to further promote transparency and fairness
  • clarifying the role of officers and supporting the governance of charities
  • improving regulatory compliance and enforcement tools.

The Charities Amendment Bill (the Bill) was introduced by Community and Voluntary Sector Minister, the Hon Priyanca Radhadkrishnan on 21 September 2022.

As had been signalled by the Minister in June this year (see Charities Act changes benefit NZ communities), the government are proposing changes in the Bill aimed at increasing transparency, improving access to justice services and reducing the burden on smaller charities. At the time, the DIA released a full list of changes proposed to the Charities Act.

The Bill now awaits its first reading (scheduled for this week) with the public having the opportunity to provide feedback through an anticipated six-month select committee period.

Read the Ministers’ press release dated 21 September 2022, as well as further details about the progress of the Bill on the DIA website.

We will keep you updated on progress of the Bill and the select committee submission process, once details are available.

Companies (Directors Duties) Amendment Bill 2021

Update  11 November 2022: The Companies (Directors Duties) Amendment Bill has passed its first reading (on 9 November 2022) and has now been referred to the Economic Development, Science and Innovation Select Committee. 

The closing date for submissions is 8 January 2023

The Companies (Directors Duties) Amendment Bill is a private members bill (Hon Duncan Webb) introduced on 23 September 2021. The Bill proposes to clarify by an amendment to the Companies Act, that a company director, in acting as the mind and will of the company, can 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.