Reducing the compliance burden for business: some welcome reforms on the horizon
By Alberto Colla and Bart Oude-Vrielink
The Treasury has recently released draft legislation for public comment, with the aim of significantly reducing compliance costs for business and improving business productivity generally. The proposals comprise: removing the obligation on a public company to hold a general meeting on the request of 100 shareholders (the so-called ‘100-member rule’); introducing a new test for payment of dividends; requiring companies to include a general description of their remuneration governance framework, to the extent that it is not included elsewhere in the annual report; removing the requirement to disclose the value of options granted to key management personnel, replacing it with a requirement to disclose the number of lapsed options and the year in which they were granted; relieving certain disclosing entities from the obligation to prepare a remuneration report; transferring the remuneration setting responsibility for the offices of the Financial Reporting Council (FRC), Australian Accounting Standards Board (AASB) and Auditing and Assurance Standards Board (AUASB) to the Remuneration Tribunal; improving the efficiency of the Takeovers Panel, by allowing the panel to perform panel functions while overseas; exempting certain companies limited by guarantee from the need to appoint or maintain an auditor; and a minor technical amendment to clarify that companies may vary their financial year by up to seven days, regardless of the length of previous years.
The bill is expected to be introduced in the 2014 autumn/winter sittings of parliament. There is a five-week consultation period, with submissions closing on 16 May 2014.
Accordingly, you should note the forthcoming changes and recognise that, as with any draft legislation, the proposed reforms are likely to undergo refinement as a result of the consultation process and then the parliamentary process…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
The ASX has amended its operating rules to enhance disclosure requirements and facilitate the expansion of exchange traded funds.
Government to crack down on multinationals and profit-shifting, while encouraging small enterprises.