In the discussion document released yesterday, the NZX calls for feedback on the effectiveness of seven identified areas of the existing Code, being:
- the “comply or explain” regime generally;
- director independence;
- executive remuneration;
- shareholder meetings;
- shareholder participation in capital raisings;
- environmental, social and governance reporting; and
- diversity practices.
In addition, NZX is seeking feedback on its proposal to establish the “NZX Corporate Governance Institute”. This would be a standing forum of industry stakeholders that would provide feedback to NZX in relation to the Code’s settings.
Consultation responses are due on 28 January 2022, meaning many interested parties will inevitably try to have their responses completed before they break for Christmas – with plans to pick it up again in January if needed.
This is the initial round of consultation. A second consultation paper is expected to be released in March 2022 with more specifics on proposed rule changes. The NZX hopes to be in a position to submit Code amendments to the Financial Markets Authority by June 2022 and for the amendments to be effective from September 2022.
Bell Gully will be making submissions to NZX.
If you would like to make submissions or have any questions about the matters raised in the discussion document, please get in touch with the contacts listed or your usual Bell Gully adviser.