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developments in England at the time were relevant and important to the development
of company legislation in Australia. 48
The English influence on New Zealand company law has been apparent since the
introduction of the first Companies Act in 1860. 49 English company law exerted its
influence in New Zealand law through the adoption of that statute without any
alterations or modifications. 50 Australia too plays an important role in influencing the
shape of New Zealand company law. The dominant influence of Australia, especially
Victoria, during the economic boom of the 1860s and 1870s on New Zealand
legislation was apparent, and was as great as the English influence before. 51 Other
external influences on New Zealand company law in the twentieth century came
from North American law - that of Canada and the United States. 52 The reliance on
North America has increased since the UK‟s entry into the European Union, as the
latter now has to comply with various EU Directives for the harmonisation of law in
the European Union. 53
As a result, English law is no longer deemed as a suitable model to be adopted
because priorities and focus in the development of the law have become distinctive.
However, there are features of the Companies Act 2006 which are worth
consideration such as provisions are relating to director‟s duties. 54 The trend in the
48 Ibid.
49 Law Commission Company Law Reform and Restatement (NZLC R9,1989) at [29].
50 Ibid.
51 Peter Spiller, Jeremy Finn and Richard Boast A New Zealand Legal History (Brookers, Wellington,
2001) at 87 - “The Australian dominance particularly that of Victoria was due to the strong ties of
the two colonies. Many of the migrants attracted to the goldfields in South Island were formerly the
residents of Victoria and a number of them rose to prominence in New Zealand.”
52 NZLC above n49 at 31.
53 Farrar above n45 at 12.
54 More discussions on this will be made later in the chapter. See the Role of Law Reform Agency
below.
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