Relationship laws may 'out' businesspeople

By HELEN TUNNAH, deputy political editor

Company directors may be forced out of boardroom closets under new relationship laws unveiled yesterday which are already sparking privacy concerns.

The two laws, which give legal recognition to straight and gay relationships outside marriage, will also require real estate agents to be more forthcoming about who they are living with. They will require directors to disclose if their gay partner might be in a position to benefit from company decisions.

Associate Justice Minister David Benson-Pope said last night that privacy issues in the laws might need to be reviewed if people such as a company directors were being asked to make public declarations about their lifestyle.

However, he said it remained important to ensure that company and other laws relating to conflicts of interest and to material gain were robust.

"Where there's potential conflict then I guess people are going to have to balance that need for public disclosure with their desire for privacy.

"Clearly, it's far from our desire to intrude on people's privacy. But in company law, where there is a question over appropriate behaviour, or not, that always must come first.

"It would make them [directors] make that declaration only if there was a position of conflict."

Under the Companies Act, directors already have to declare any benefits or conflicts surrounding spouses and straight de facto partners, and those interests may be listed in a shareholders register or annual report.

The Relationships (Statutory References) Bill, which sits alongside the Civil Union Bill setting up an alternative to marriage, will extend the Companies Act to cover gay partners.

The Real Estate Agents Act is another one of more than 140 laws and regulations which will be changed. At present, an agent cannot sell a house to his or her spouse or child. Restrictions will be extended to include civil union and de facto partners, straight or gay.

Mr Benson-Pope told the Herald he had received reports that there were problems now with real estate agents not declaring personal relationships, mainly de facto partnerships. Proper and full disclosures of conflicts would benefit the public, he said.

Privacy Commissioner Marie Shroff last night declined to comment on the changes.

Institute of Directors chief executive Nicki Crauford, who had yet to see the legislation, said her initial reaction was that the proposed changes would be in line with current practice.

Other aspects of the law will also require gay relationships to be declared. However, the legislation requires privacy to be maintained for declarations such as those made to Government agencies in areas such as tax and benefit payments.