The NZX Corporate Governance Code has been under review for two years, and this is the first time it has been updated since 2003, following feedback from more than 80 industry participants.
The 2017 edition of the Code is broad-reaching, addressing all key aspects of effective corporate governance, and is structured around eight principles: Ethical behaviour, board composition and performance, board committees, reporting and disclosure, remuneration, risk management, auditors, and shareholder rights and relations.
The updated Code takes effect from 1 October 2017, so that it must be reported against for reporting periods ending 31 December 2017 and beyond.
There are many good reasons why the NZX Code is being addressed at a boardroom level.
It exists to promote good corporate governance, recognising that boards are in place to protect the interests of shareholders and provide long-term value. We know that strong corporate governance should improve company performance and increase shareholder value, helping to drive the long-term health of the capital market.
In New Zealand, we can also be proud that we have a stable economy, and it’s no coincidence that it’s underpinned by sound corporate governance practices. This reputation relies on us constantly challenging ourselves to perform, adapt and set a high bar.
Expert insights into the new Code
During November 2017, we held a number of events where – along with an expert panel – we explored the key intentions and impacts of the changes to the NZX Code, and some of the corporate governance practices it’s driving.
You’ll find a snapshot of their perspectives in this brief video.
NZX Corporate Governance Code - November 2017
During November 2017, we held a number of events where – along with an expert panel – we explored the key intentions and impacts of the changes to the NZX Code, and some of the corporate governance practices it’s driving. You’ll find a snapshot of their perspectives in this brief video.
Implications for remuneration related governance
There are a number of specific impacts of the new Code for remuneration related governance which are summarised in the ‘one stop’ guide below. This guide has been developed to assist listed companies (and others wanting to voluntarily align with the Code’s principles) to understand and apply the Code in the context of their remuneration practices.
If you have any questions in relation to the Code and its application from a remuneration perspective, please contact Chris Place, PwC Partner, or one of our team of remuneration experts (see guide attached) to discuss how we can help you.
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