Huo Raymond: Companies Amendment Bill (No 4) Limited Partnerships Amendment Bill (No 2) — Third ReadingsText is incorporated into the Bound VolumeHuo Raymond: Companies Amendment Bill (No 4) Limited Partnerships Amendment Bill (No 2) — Third Readings[Sitting date: 24 June 2014. Volume:699;Page:18848. Text is incorporated into the Bound Volume.]RAYMOND HUO (Labour):I rise to take a call to support the Companies Amendment Bill (No 4) and the Limited Partnerships Amendment Bill (No 2). This is very important legislation. It is urgent legislation and should be passed with a great sense of urgency.The report prepared for the Minister of Commerce who is responsible for this legislation in August 2012 said that New Zealand shell companies allowed money-laundering totalling $1.5 billion a year. The report warned that New Zealand was becoming a domicile of choice for those seeking to engage in illegal activities. Again in 2012 New Zealand was struck off the prestigious European Union banking and corporate white list over this country’s weak money-laundering and terrorism financing controls. Being struck off the white list will put New Zealand banks and corporates in an awkward situation and it will have a negative impact on New Zealand banking and institutions.What is worth reiterating is that this legislation’s genesis came from revelations in early 2010 that a New Zealand - registered company had leased a plane loaded with 35 tonnes of guns and explosives. It was later intercepted in Bangkok trying to smuggle arms from North Korea to Iran. The Government has been aware of those issues for some time and this legislation is part of the measures addressing those problems.It is disappointing that this legislation has received almost no attention since its introduction and has languished at the bottom of the Order Paper. How on earth could such legislation which protects New Zealand’s international reputation and prevents this country from being abused and exploited by those terrorists have received such low priority from this National-ACT Government? Labour however has taken a positive and constructive approach and we support this legislation.This legislation will give new powers to the Registrar of Companies to investigate and deal with non-compliance with the Companies Act. This legislation will allow the removal of companies from the register if they provide inaccurate information or persistently fail to comply with the Act. The registrar will also be able to ban directors of such companies from taking part in the management of any company for up to 5 years. The legislation will make similar changes to the Limited Partnerships Act so that those misusing New Zealand companies cannot avoid the new regime by registering limited partnerships instead. This legislation will better align the Companies Act with the Takeovers Code to ensure that shareholders understand the effect that the changes in company control will have on the value of their shares.And finally this legislation introduces criminal offences for directors who commit serious breaches of their duties to act in good faith and in the best interests of the company and to not carry on business in such a way that risks serious loss to the company’s creditors. To conclude this legislation enhances the registrar’s investigative and deregistration powers. It will help protect New Zealand’s international reputation and prevent this country from being exploited and abused by those terrorists. Thank you.Bills read a third time.