Foss Craig: Companies Amendment Bill (No 4) Limited Partnerships Amendment Bill (No 2) — Third ReadingsText is incorporated into the Bound VolumeFoss Craig: Companies Amendment Bill (No 4) Limited Partnerships Amendment Bill (No 2) — Third Readings[Sitting date: 24 June 2014. Volume:699;Page:18836. Text is incorporated into the Bound Volume.]Hon CRAIG FOSS (Minister of Commerce):I move That the Companies Amendment Bill (No 4) and the Limited Partnerships Amendment Bill (No 2) be now read a third time. It gives me great satisfaction to support this legislation at the third reading. This legislation will protect New Zealand’s international reputation as a trusted place to do business. This is an important part of the Government’s Business Growth Agenda to improve regulation and lift confidence in New Zealand’s capital markets.I would once again like to thank the Commerce Committee and the submitters for their work on and contribution to this legislation. I would also like to express my appreciation for the broad cross-party support received in the House for this legislation. I would also like to thank the sector for its ongoing contribution and its continued engagement in the development of this legislation particularly in including the refinement over the past few months for directors’ duties offences.The Companies Amendment Bill (No 4) will strengthen the rules applying to the registration governance and reconstruction of companies. The Limited Partnerships Amendment Bill (No 2) mirrors the registration changes so that they apply to limited partnerships. I would also like to quickly outline some of the key initiatives.Firstly the legislation will ensure the integrity of New Zealand’s companies and limited partnerships registration regimes. It will require companies to have a director who either lives in New Zealand or lives in and is a director in a prescribed enforcement country. It strengthens the ability of the registrar to obtain information about who truly owns and controls New Zealand companies and limited partnerships. These changes address the misuse of shell companies registered in New Zealand but do not impede the ease of doing business for the vast majority of New Zealand companies.The introduction of further offences for directors who cause serious loss to a company or to creditors will encourage directors to focus on their key duties and will deter undesirable behaviour. This strengthens the reputation of New Zealand companies for good governance and supports investor confidence. These offences were redrafted in light of submissions to the Commerce Committee. I am confident that we have landed in the right place and that the offences are set appropriately. I have seen recent commentary to support this.Aligning the processes for company amalgamations and schemes of arrangements with the Takeovers Act will ensure that all shareholders of widely held companies can participate in amalgamations and other arrangements in an informed way. This Government is committed to ensuring that our legislative framework promotes investor confidence a key driver of long-term sustainable economic growth. The Companies Amendment Bill (No 4) and the Limited Partnerships Amendment Bill (No 2) are key reforms that will strengthen New Zealand’s international reputation as both an easy and trustworthy place to do business. I commend this legislation to the House.