Corporations Legislation Amendment Bill 2014

Monday, 19 January 2015

On 20 January 2014, the Australian Institute of Company Directors provided a submission to the Senate Economics Legislation Committee on the Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 (the Bill). 


On 20 January 2014, the Australian Institute of Company Directors provided a submission to the Senate Economics Legislation Committee on the Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 (the Bill).

If passed, the Bill would abolish the ‘100 member rule’ which allows 100 members of a company to requisition an extraordinary general meeting of a company. The AICD has long advocated for the removal of the 100 member rule and therefore supports its repeal.

We note that the removal of the 100 member rule would not in any way diminish the existing right of 100 members to raise concerns about the company by requesting that:

  • a resolution be placed on the agenda for a company’s general meeting
  • the company distribute statements to all of its members about a resolution or a matter that may be properly considered at a general meeting

It would also not diminish the right of 5% of members to:

  • requisition an extraordinary general meeting
  • place resolutions on the agenda for the company’s annual general meeting
  • request the company to distribute statements to all of its members

The removal of the ‘100 member rule’ would provide a good example of the type of deregulation that would allow business to operate more efficiently, without compromising the fundamental rights of shareholders.

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