Listed companies and other financial markets businesses will now have alternative options for sending annual reports, saving them money and time, says Commerce and Consumer Affairs Minister Jacqui Dean.
“Cabinet has agreed to changes to the Financial Markets Conduct Regulations 2014 which will allow ‘FMC reporting entities’ to reduce the number of annual reports they send,” Ms Dean says.
“This will result in time and cost savings, and a reduction in the amount of paper required.
“Currently companies are required to send to every shareholder a hardcopy of their annual report or a notice asking if the shareholder would like to receive a copy.
“Under the new process they can instead make their annual report publicly available online, after asking shareholders how they would like to receive the reports.
“Those shareholders who would like to receive printed annual reports can still receive one free of charge.
“My fellow MP Matt Doocey introduced a Member’s Bill on this matter late in 2016, noting that digital communication is now the primary means by which investors obtain information on listed companies. Many of the proposals in Mr Doocey’s Bill have now been adopted.
“I Intend to have regulations in place later this year.”
A copy of the Cabinet paper outlining the proposed changes is available at the MBIE website http://www.mbie.govt.nz/info-services/business/business-law/financial-markets-conduct-act/regulations