Changes ahead

Companies Act reforms are planned for 2025, with Commerce and Consumer Affairs Minister Andrew Bayly leading the charge.

His plans include scrapping the requirement for company directors’ home addresses to be public on the Companies Register, allowing instead for another service address online, such as for their business or lawyer.

The aim is to better protect directors’ safety and privacy while still ensuring an address is provided for accountability, including from those owed money by the company. The minister will introduce a bill to Parliament early next year to revamp the Companies Act 1993. Part of the revamp is also a proposal to require directors or general partners to verify their identities with a form of digital ID.

The bill will enable the Companies Office to more accurately link individuals to the various entities they are associated with and display these connections on the register, making it easier for businesses, creditors and consumers to do their due diligence. It would also help law enforcement accurately identify people.

Behind the move is helping to combat “phoenixing”- a director setting up a new company with the intention of defeating the interests or creditors of the old company. Members of the public will be able to provide feedback once the bill has been introduced to Parliament next year, and goes through the select committee process.

Improved insolvency rules are also on the revamp radar.