New rules simplify company directors disclosure

Directors and officers of listed companies will have simplified and reduced disclosure requirements under amended Securities Market regulations, Commerce Minister Lianne Dalziel announced today.

The previous regime required all directors and those officers who 'take part' in the management of a listed company's business, generally, had to disclose any securities trading within five trading days of the transaction taking place.

"This went too far and wasn't serving the market in any way. It imposed compliance obligations that were disproportionate to the risk involved," Lianne Dalziel said.

The amendment will reduce the number of officers who fall within the regime because it narrows the definition of 'officers' to persons who report directly to the Board of Directors and their direct reports.

The changes introduce simpler forms, allow one form to be used to record different and multiple types of transactions, and permit a person authorised by the director or officer to sign disclosure forms and lodge them with NZX on the director‘s or officer's behalf.

The Securities Markets (Disclosure of Relevant Interests by Directors and Officers) Amendment Regulations 2008 come into effect on 9 October 2008.