Important Upcoming Legislation Drafted

Two bills introduced in Parliament in 2021 will, if passed, make small but significant changes to the law as it relates to business.

Company law: The Companies Act 1993 requires directors to act in the ‘best interests’ of the company, which was traditionally understood to mean maximising return to shareholders.

If passed, the Companies (Directors Duties) Amendment Bill will clarify that a director may also consider environmental, social and governance factors when determining the best interests of the company, including:

• Recognising the principles of the Treaty of Waitangi

• Reducing adverse environmental impacts

• Upholding high standards of ethical behaviour

• Following fair and equitable employment practices, and

• Recognising the interests of the wider community.

Sexual harassment: The Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill, if enacted, will extend the time frame for raising a personal grievance for sexual harassment from 90 days to 12 months in an effort to recognise that being exposed to sexual harassment can be traumatic and may take time to process before coming forward.

While it’s expected both bills will become law, they are currently awaiting their first readings and may be changed before being enacted. We will keep you posted.

DISCLAIMER: All the information published is true and accurate to the best of the authors knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this article. Views expressed are those of individual authors, and do not necessarily reflect the view of this firm. Articles appearing in this newsletter may be reproduced with prior approval from the editor and credit given to the source. Copyright, NZ LAW Limited, 2019. Editor: Adrienne Olsen. E-mail: adrienne@adroite.co.nz. Ph: 029 286 3650 or 04 496 5513.