House debates

Thursday, 12 May 2011


Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011; Consideration in Detail

11:45 am

Photo of David BradburyDavid Bradbury (Lindsay, Australian Labor Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

I present a supplementary explanatory memorandum to the bill. I ask leave of the House to move government amendments (1) to (4) as circulated together.

Leave granted.

I move government amendments (1) to (4):

(1)   Schedule 1, item 37, page 29 (line 26), omit “1 July 2011”, substitute “1 August 2011”.

(2)   Schedule 1, item 37, page 30 (line 3), omit “1 July 2011”, substitute “1 August 2011”.

(3)   Schedule 1, item 37, page 30 (line 5), omit “1 July 2011”, substitute “1 August 2011”.

(4)   Schedule 1, item 37, page 30 (line 10), omit “1 July 2011”, substitute “1 August 2011”.

Today I move amendments to the bill that demonstrate the government's preparedness to assist companies in managing their corporate governance responsibilities. The amendments respond to concerns raised by business. They seek to delay the application date of three of the bill's measures from 1 July 2011 to 1 August 20l1. These measures are the prohibition on key management personnel and their closely related parties from voting their shares in the non-binding vote on remuneration and exercising undirected proxies on remuneration related resolutions and the prevention of cherry picking of proxy votes.

The amendments are proposed as a small number of companies have requested transitional relief from these aspects of this bill. These companies are scheduled to hold their annual general meetings in July 20l1 and as such are due to finalise their meeting notice papers in May or June. As the bill remains subject to parliamentary consideration, these companies are seeking relief on the basis that they will not know at the time of finalising their meeting notice papers when the bill will be enacted and what its final form will be.

The amendments demonstrate the government's preparedness to assist companies in implementing sound corporate governance and the efficient provision of advice to their shareholders. As the delay in application affects only three measures, the broad policy purpose of the bill would continue to be applicable from 1 July 2011, the date on which the government has publicly stated its intention for the reforms to take effect. The full force of the bill, including the prohibitions on key management personnel voting in the potential first strike, would apply to the vast majority of companies that hold their annual general meetings during the October reporting season.


No comments