The DominionPost today reports that a Ministry of Economic Development report has raised the possibility large private companies may soon have to open their finances to public scrutiny. The MED has called for public submissions on the matter.

Todd Energy is part of the large family-owned Wellington-based Todd Corporation, thought to be worth about NZ$2 billion. Large private companies currently have to produce financial reports but do not have to file them with the Companies Office.

The MED review also seeks views on whether entities such as mutual societies and credit unions, should be subject to the same reporting standards as companies, and proposes that small companies be exempt from any audit or filing requirement.

However, experts say the possibility that private companies will have to open their books is likely to be most controversial.

Chapman Tripp securities law specialist Geof Shirtciffe is reported as saying private company owners would be horrified at the prospect of having to start publishing accounts.

It was not clear whether there was any public benefit in opening up the accounts of big, private companies. However, reducing reporting requirements for smaller companies and creating a more coherent reporting structure appeared sensible, Shirtcliffe said.