Consultation
The SOP has been consulted with UFNZ, ACT New Zealand, and with Mighty River Power. No feedback was received that has required any amendments to the SOP.
No further consultation is proposed before the SOP is introduced.
Conclusions and recommendations
The proposal to include non-voting shares in the 51% floor and the 10% cap has a minimal regulatory burden, and will impose few, if any, costs on businesses and other stakeholders beyond those imposed by the existing 51% floor and 10% cap. Because this is being done by an SOP, it will have limited effect on House time.
Implementation
The policy option will be implemented through a SOP to the MOM Bill. If agreed, the SOP will come into force at the same time as the remainder of Part 2 of the Bill, at Royal Assent. The newly configured 10% cap will be susceptible to the same enforcement as are available at present: that is, by the shareholder, by the company, and by the FMA, through reviewing substantial shareholder notices (SSNs) filed under the Securities Markets Act 1988. Caps on shareholding are not uncommon in companies listed on the New Zealand Stock Exchange, and the operation of SSNs is well-understood. No particular education campaign is needed or planned.
Monitoring, evaluation and review
There are no proposals to monitor or evaluate the inclusion of non-voting shares in the 51% floor or the 10% cap.
