Internet voting plan announced

Commerce Minister Simon Power. Photo / Mark Mitchell

Shareholders could be voting for new directors on the internet by next year under a promised change to the Companies Act.

Commerce Minister Simon Power yesterday told members of the Shareholders Association he planned to include an amendment to the act as part of a raft of new regulatory reforms expected in a bill this year.

The association had been working with the Ministry of Economic Development on proposals to allow companies to opt into using electronic shareholder participation for company decisions, he said.

Power said he intended to include its proposals in the Regulatory Reform (Omnibus) Bill 2010 which was being drafted.

"I'm sure we agree that anything that results in an increase in shareholder participation in corporate decisions is welcome," Power said.

At present shareholders can either vote by post through a proxy voting form or by attending meetings in person.

A spokesman for the minister said Power intended to introduce the bill to Parliament in the next few months. The change would update the law allowing technology to be used by companies for voting but would not specify which technology they could use.

Shareholders Association chairman John Hawkins said the change would give people the chance to cast votes directly over the internet while watching a webcast of a meeting.

"The rationale is we want to have more international investors in New Zealand. But they have to be able to vote. Now they can only do it by proxy - they can't do it after listening to the arguments."

He did not believe it would see fewer people attending meetings. "DVDs didn't stop people wanting to go see live bands."

Less technology-savvy older investors would go and being there in person was still the only way to ask questions.