View/Open - Research Commons - The University of Waikato

operation and termination of a company and at the same time preventing the
possibility of abuse as well as not undermining the social and economic benefits. 101
The Commission concluded that the new legislation should be modelled after the
work of the Canadian Dickerson Committee. 102
The Commission regarded the Australian Code, apart from insolvency law, to be
inadequate, inefficient and not so far advanced as that of New Zealand, hence the
departure. 103 Despite the harmonisation of business law through the Australian and
New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), 104 the
Committee felt that it did not mean that the laws of the two countries should be
identical in all aspects. Instead, the law must be able to provide avenues for solutions
and should not create barriers to trade and investment. 105 At about the same time, the
Commonwealth Government in Australia sought to introduce unified legislation in
order to administer control over company matters. Since the success of the
legislation was yet to be seen, the Commission felt that there was no point in
adopting that model, and instead decided to focus on the improvement of the New
Zealand legislation. 106 As a result of the recommendations, the Companies Act 1993
101 Ibid, at [23].
102 Ibid, at [32].
103 Ibid, at [145-153].
104 Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) was formally
signed by Australian and New Zealand Governments on 28 March 1983. The objectives of this
agreement are stated in Article 1 of the ANZCERTA and provide:
a) to strengthen the broader relationship between Australia and New Zealand
b) to develop closer economic relations between Member States through a mutually
beneficial expansion of free trade between New Zealand and Australia
c) to eliminate barriers to trade between Australia and New Zealand in a gradual and
progressive manner under an agreed timetable and with a minimum of disruption
d) to develop trade between New Zealand and Australia under conditions of fair
competition.
105 As part of the review of the ANZCERTA, Australian and New Zealand Governments signed a
Memorandum of Understanding (MOU) on 1 July 1988. As a result of the MOU, the Steering
Committee was appointed to examine the scope for harmonization of business law and regulatory
practices in areas identified by the MOU. On 31 August 2000 another MOU was signed to replace
the 1988 MOU.
106 NZLC above n49 at [31]
41