Corporate governance principles for New Zealand

In February, the Securities Commission gave its report on Corporate Governance Principles for New Zealand to the Minister of Commerce.

The report followed extensive public consultation last year. In the report, the Commission developed principles for good corporate governance in New Zealand.

Jane Diplock, the Commission Chairperson, commented that "there was strong support for the concept of a principles-based approach to corporate governance, and the final document is in line with the public views that came from the consultation process".

The principles focus strongly on reporting and disclosure of corporate governance structures and processes, as well as on reporting of financial and other material matters.

The document includes guidelines to assist entities with achieving each principle.

Corporate governance practices and research from relevant overseas jurisdictions were also taken into account in drafting the principles in order to bring New Zealand into line with best practices overseas.

The Commission's principles do not impose mandatory obligations on issuers of securities. Rather, the Commission encourages entities to adopt and report against these principles and, when poor corporate governance is identified, the Commission intends to report publicly on it.

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