The Financial Markets Authority (FMA) has published its refreshed Corporate Governance handbook.
The handbook has been updated to remove any unnecessary overlap with the NZX Code, particularly to ensure the NZX Code is the primary source for requirements for listed companies. It has also been updated to bring it in line with corporate governance developments in New Zealand and globally.
The revised handbook is designed as a guide for a wide range of companies and businesses including those who want to raise capital or list on the NZX.
“The FMA is particularly keen for businesses involved in New Zealand’s financial markets to consider the principles and how they can work towards meeting them,” says Simone Robbers, FMA Director of Strategy and Risk.
“Adopting the principles in the handbook will provide companies and businesses with a solid base for future growth, value creation, investor confidence and long-term sustainability.”
The Authority says the handbook is principles based, rather than a check-list as a one-size-fits-all approach is not appropriate for every business, and for smaller companies the principles provide guidance on areas they can work towards over a period of time.
The revised handbook contains updated content in areas including non-financial reporting, environmental and social governance reporting, guidelines on auditor independence and audit committees, transparency of remuneration disclosures and board composition.
The handbook was first published in 2004 and has been updated regularly since.