The Director : The 2009 Corporate Governance Agenda; A New Year and a New Government. Mark Peart Talks to Minister of Commerce Simon Power to Get His Views on the Corporate Governance Agenda for 2009 and Then Canvasses Others for Their Agenda Items

By Peart, Mark | New Zealand Management, February 2009 | Go to article overview

The Director : The 2009 Corporate Governance Agenda; A New Year and a New Government. Mark Peart Talks to Minister of Commerce Simon Power to Get His Views on the Corporate Governance Agenda for 2009 and Then Canvasses Others for Their Agenda Items


Peart, Mark, New Zealand Management


Byline: Mark Peart

New Commerce Minister Simon Power has several priorities for advancing corporate governance in New Zealand in 2009, centred on reforms he believes will increase New Zealand businessCO opportunities to access capital.

A major focus will be the final report of the Capital Market Development Taskforce which is due in September. The taskforce is looking at the state of New ZealandCOs capital markets, the international context, future risks and opportunities and key changes necessary to deliver the best possible capital markets for New Zealand. Power said he expects the taskforce to be C[pounds sterling]innovative in their thinking and bold in their proposalsC[yen].

A review of the Securities Act and Securities Markets Act formed part of the work on the effectiveness of the capital markets.

C[pounds sterling]Neither is working as effectively as it should be,C[yen] Power said. C[pounds sterling]I will be announcing changes in 2009 that will improve investor confidence, particularly for mum and dad investors, and ensure that financial markets regulators are equipped to carry out their roles effectively.C[yen]

Power said his second area of corporate governance priority relates to financial reporting and the role of auditors and auditor regulation in promoting market confidence.

He also expects to announce decisions in relation to auditor regulation oversight.

C[pounds sterling]I will give a priority to dealing with the excessive financial reporting preparation requirements for small companies, the uncertainties for some reporting entities about their financial reporting obligations, and the inconsistencies across the financial reporting framework.C[yen] A discussion document will be released on the issue this year.

Power says he will make decisions on auditor liability issues.

C[pounds sterling]The accounting profession has been telling me there are problems with joint and several liability. I want to hear both sides of the story before making a decision,C[yen] he said, noting that there will be a discussion document on this matter in 2009.

Power said any reforms would be advanced consistent with the development of the New Zealand-Australia Single Economic Market objective.

C[pounds sterling]We will not be rushing in with a knee-jerk response to the global financial crisis. A good appreciation of what happened is starting to be developed. But knowing the C[pounds sterling]whatC[yen] is not enough. We need to know the C[pounds sterling]whyC[yen] before we decide what changes, if any, are required. We will also be monitoring how other governments respond.C[yen]

This is how the minister sees the priorities. What do others think? The Director took a sampling of expert opinions to find out.

GEOFF RICKETTS, chairman, Lion Nathan, QBE Chairman of the Year, Auckland

In my view, the corporate governance framework recommended by the NZX and other recipe books is more than adequate.

In the current recession, the focus should shift from conformance more to performance. While some regulation may be required in the finance sector, regulators need to be very careful about imposing additional costs on business.

In reality, it is businesses that pull the economy through. Business creates employment, pays the taxes to fund government and ultimately creates the nationCOs wealth.

Accordingly, Government needs to be focused on the right policy settings to ensure business can thrive, its costs are reduced, and crown costs as a percentage of GDP are reduced to be more in line with those of our major competitor nations.

Government needs to create an environment where the income gap between Australia and New Zealand can be narrowed and eventually closed. Otherwise, we will continue to lose our best and brightest across the Tasman.

New Zealand was one of the first countries to enter the recession in 2008 but this was probably more due to domestic factors such as policy failures of the previous government rather than the international financial crisis.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Director : The 2009 Corporate Governance Agenda; A New Year and a New Government. Mark Peart Talks to Minister of Commerce Simon Power to Get His Views on the Corporate Governance Agenda for 2009 and Then Canvasses Others for Their Agenda Items
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.