Move to allow electronic shareholder voting

The Government is moving to allow electronic voting by shareholders in a bid to improve shareholder participation.

Commerce Minister Simon Power said the New Zealand Shareholders Association has worked with Ministry of Economic Development officials on proposals to amend the Companies Act to allow companies to use electronic shareholder voting for company decisions.

"I can announce today that it's my intention to include this in the Regulatory Reform (Omnibus) Bill 2010 which is currently being drafted and I thank the association for its input into this," he said in a speech to the association's annual meeting today.

Bruce Sheppard stood down as chairman at the meeting. He spoke of the association's achievements in the past ten years. The high profile shareholders' advocate has been appointed to the board of the new Financial Markets Authority.

The law for company meetings is specifically worded and did not take into account the development of new technologies, an official said. The law change would give companies the opportunity to use new technology.

Mr Power said his focus was on restoring investor confidence in capital markets after the global financial crisis and the collapse of finance companies.

He had met the board of the new Financial Markets Authority once.

"Reports I'm receiving is that it is making very good progress in getting the regulator established by the first quarter of next year," he said.

The new regulator consolidates all the functions fragmented across the Securities Commission, the Ministry of Economic Development, including the Government Actuary, and the NZX.

"I believe the Financial Markets Authority will have the powers it needs to do the job. But we are consulting on this as part of the review of securities law, and let me assure you today that if further powers are required then the Financial Markets Authority will get them," Mr Power said.

- NZPA