On 24 October 2014, Company Directors lodged a submission with Federal Treasury opposing the abolition of the Corporations and Markets Advisory Committee (CAMAC).
The proposed changes mostly expand the current guidance given in relation to analyst and investor briefings, analyst forecasts, consensus estimates and earnings surprises.
Overall, we believe the amendments are useful and the additional guidance and examples provided are very clear.
Our submission was in response to the release of an exposure draft of the Australian Securities and Investments Commission Amendment (Corporations and Markets Advisory Committee Abolition) Bill 2014.
Company Directors strongly opposes the abolition of CAMAC and recommends that the proposed abolition not proceed.
CAMAC has played an important role in the development of corporate law since it was created in 1989. It has made a significant contribution to the identification, explanation and analysis of corporate law and market related problems. CAMAC has also played an important educational role by preparing high quality and well researched reports which effectively set out technical issues in a clear and highly readable manner.
As the Government tries to reduce red tape, we are of the view that the Government’s decision to dismantle CAMAC is likely to increase red tape in the long term. This is because there will no longer be a cost effective, highly experienced and independent body considering improvements to the corporate law in Australia.
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