Dean Jacqui; Halbert ShananCOMPANIES (DIRECTORS DUTIES) AMENDMENT BILLFirst ReadingDebate resumed from 21 September.ASSISTANT SPEAKER (Hon Jacqui Dean): When this debate was last debated we were just finishing with a National speaker and so now I call Shanan Halbert.SHANAN HALBERT (Labour—Northcote): Kia ora and thank you for the opportunity to speak this evening Madam Speaker on the Companies (Directors Duties) Amendment Bill. This bill seeks to amend the Companies Act 1993 by inserting a new subsection (5) into section 131 of the Companies Act 1993. Section 131 sets out the duty of a director of a company when exercising powers or performing duties to act in good faith and in what the director believes to be the best interests of the company.I want to acknowledge Dr Duncan Webb who is the member putting this amendment bill forward. He did a cracker of a speech in the general debate today and we're really really proud of him. But the work that he has done and the simple way that he explained this particular bill to me is that it's about ensuring that directors are as responsive to the needs of the community and their stakeholders as much as they are about the profit margin of their particular company.So this new subsection (5) inserts several environmental social and governance factors that a director may when determining the best interests of the company take into account. Those factors can include: recognition of Te Tiriti o Waitangi the Treaty of Waitangi; reducing adverse environmental impacts; upholding high standards of ethical behaviour in their organisation—and when we speak of the last bill that was just read the Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill it's important that organisations are looking into that piece of work within their organisation; that they're following fair and equitable employment processes; and recognising the interests of their wider community.I've spent a lot of time working with businesses in Tāmaki-makau-rau Auckland and we've seen growth I guess of organisations being far more responsive to sustainability. They recognise that as an important part of their future and an important part of their brand. Second to that is the increased responsiveness to corporate social responsibility that many businesses that I've worked with have embarked on. But that doesn't mean that everyone recognises those key things as attributes of their organisations that they do tend to look towards. Profit is the main driver that measures their success. But I do want to acknowledge those organisations that do do a very good job at what this particular bill attempts to do.In the first speech where we listened to Dr Duncan Webb he shared some words in his opening remarks that I wanted to quote this evening. I'll try my best Dr Duncan Webb voice this evening for everyone—along with his little laugh that he does! The spark for this little bill was an urgent debate in Parliament on the letter of expectations that the Minister sends to Air NZ every year. It set out some climate expectations good employer expectations etc. David Seymour thought this an outrage to divert Air NZ from a maximising profit motive. I thought it nonsensical that there was a debate at all—but thought if there is some suggestion that 'the best interests of the company' means 'making as much profit as we can …' then we need to clear that up." I thought that was a great synopsis of what this particular bill aims to do—and a good man behind it.Just quickly to go through there are some changes being proposed—amendments to this bill. In clause 1 it outlines the title clause. Clause 2 is the commencement clause and provides for this bill to come into force on the day after it receives the Royal assent. Clause 3 identifies the Companies Act 1993; this is the principal Act the Act being amended by the bill. Clause 4 amends section 131. And the important one new subsection (5): "To avoid doubt a director of a company may when determining the best interests of the company take into account recognised environmental social and governance factors" such as the Treaty of Waitangi the environment upholding high standards of ethical behaviour fair and equitable employment practices and recognising the important interests of their wider community.Without further ado I would like to commend this bill to the House. Tēnā koe."