Tough stance on errant directors pays off

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The pursuit of errant company directors for not filing financial statements appears to have encouraged others to pick up their act.

The Financial Markets Authority last year took a number of court cases against directors for allegedly not filing financial accounts either on time or at all.

The capital market's watchdog said that since then, the proportion of companies filing on time has improved significantly.

The FMA said 82 per cent of companies in their latest review had filed on time, compared with 73 per cent in the 2014 audit.

The review focuses on companies which raise funds from the public.

"These results demonstrate the success of the FMA's approach to improving regulatory outcomes and ensuring investors have good access to financial information," said the FMA's Elaine Campbell.

"The combined effort of both the compliance and enforcement teams is raising standards of compliance among companies that issue securities to the public. We've taken a range of actions to improve compliance, including judicial action where we see the greatest harm to investors and the markets, and this has improved results overall," Campbell said.

"Audited financial statements are an important reporting and communication tool and provide the public with an up-to-date picture of a company's financial position and future prospects, allowing them to make informed financial decisions."