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Director Independence Rule Changes

NZX Compliance17 December 2024NZXFinancials

18 December 2024
Director Independence Review: Notice of Rule and Code Amendments

In 2023, NZX commenced the review of its regulatory requirements for issuers of equity

securities in relation to director independence, with the support of the NZX Corporate

Governance Institute. This review was recently completed following a detailed two-stage

consultation process, the commissioning of academic research and international

benchmarking of practices of comparable exchanges. The review was completed in October

this year, and an application was made to the FMA for certain amendments to NZX’s regulatory

settings.

NZX has now received the necessary approval from the FMA, and wishes to notify the market of

changes to the following:

• NZX Listing Rules

• NZX Corporate Governance Code

• Governance Guidance Note

The updated Rules, Code and Guidance Note referred to above will become effective on 31

January 2025.

NZX also notes that a consequential amendment to Code recommendation 2.4 will become

effective on 1 April 2025, when new rule 3.8.1(f) becomes effective. This rule contains a new

requirement for issuers of equity securities to include certain disclosures relating to the board’s

assessment of a director’s independence in an annual report (consistent with current Code

recommendation 2.4 (c)) for balance dates ending on or after 31 March 2026.

We are also taking the opportunity to make minor updates to Appendix 4 of the Rules which

relates to the disclosure requirements for mining issuers.

Amendments

A mark-up of the amendments to the Rules and Code described above, along with the amended

Governance Guidance Note, are available at the link below:

NZX, New Zealand's Exchange- Upcoming Rules & Guidance Changes

For further information, please contact:

Kristin Brandon

Head of Policy & Regulatory Affairs

T: 04 495 5054

M: 027 577 6994

E: kristin.brandon@nzx.com

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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