On 12 May 2014, the Australian Institute of Company Directors (Company Directors) made a submission to Federal Treasury in response to its Exposure Draft of the Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014.
This Exposure Draft sets out proposed amendments to the ‘100 member rule’, dividends test and disclosures in the remuneration report.
In summary, Company Directors comments on the draft legislation are as follows:
- we support the proposed removal of the ‘100 member’ rule in section 249D(1)(b) of the Corporations Act 2001 (C’th) (the Act);
- we support the proposed amendments to the test for the payment of dividends to an express solvency test with the removal of the need for assets to exceed liabilities when declaring or determining dividends;
- we support the proposed amendments to the remuneration report; and
- without stalling the proposed amendments on the remuneration report in this Exposure Draft, we encourage Treasury to review all disclosures relating to this report as it is overly complex and of little value to shareholders.
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