3 Aug 2022

NZX promises new body will provide better investor protection

5:33 pm on 3 August 2022

The NZX is looking to raise the standard of corporate governance for listed companies.

NZX sign

NZX is looking to Australia for the setting up of its new advisory board. Photo: RNZ / Angus Dreaver

A new five-person advisory board at the stock exchange will mirror the work of the ASX's Corporate Governance Council.

Chairperson James Miller said the NZX's Corporate Governance Institute will deliver policies that provide investor protection.

"The New Zealand capital markets sector strongly supports the creation of a corporate governance institute that can make recommendations to NZX on the settings for issuers' corporate governance practices," he said.

"The aim is to ensure the NZX main board has settings in place that will improve performance.

"It will also assist NZX in delivering corporate governance policies that provide investor protections which are proportionate to the size of the NZX main board and the compliance requirements on issuers."

The NZX board will appoint members to the institute which will be chaired by senior executive Hamish Macdonald.

Miller said they proposed a shared director with the ASX's governance board to ensure standards were aligning on both sides of the Tasman.

The development of the institute follows public consultation last year on the NZX corporate governance code.

It is expected to begin its work in November.

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