12. MARYAN STREET (Labour) Link to this
to the Minister of Commerce
What measures is she taking to streamline business law?
Hon LIANNE DALZIEL (Minister of Commerce) Link to this
The passage of the Business Law Reform Bill—I hope, this week—will see the removal of unnecessary compliance costs and ensure consistency between different legislative requirements. For example, the vast majority of small companies will qualify under the new “two out of three” test and will be able to produce financial statements in a simple format under the exempt company regime, thereby reducing compliance costs significantly.
Why is the Minister not including amendments to address the concerns expressed by the Takeovers Panel during its submission to the Commerce Committee on the Business Law Reform Bill?
Hon LIANNE DALZIEL Link to this
I am advised that the Takeovers Panel raised concerns that the Companies Act scheme of arrangement process had been used by companies to avoid the Takeovers Code. The Government approved a Supplementary Order Paper to address some, but not all, of the panel’s concerns, but it could not proceed as it was objected to by the National Opposition.
What will the Government do now to address the concerns of the panel, given that the Supplementary Order Paper is not proceeding?
Hon LIANNE DALZIEL Link to this
Tragically, the issue has now had to be referred back to officials for further work before a decision is taken by Cabinet on whether broader amendments need to be made to the Companies Act, or whether the regulation-making power in the proposed Supplementary Order Paper would suffice. It is disappointing that the select committee’s unanimous support for change did not extend to the Committee stage of the current bill.