The Minister for Financial Services & Regulation, Joe Hockey, today announced the dawn of a new era in Australian corporate law.
The new Corporate Law Economic Reform Program Act - CLERP Act - comes into effect on Monday, 13 March.
"This is Australia's most significant reform to corporations law, and a reform which with huge benefit to both companies and their shareholders", the Minister said.
"The new Act reflects the Government's commitment to the reform process.
"It sends a strong signal to the international business community that Australia is serious about building its status as a leading financial centre."
The CLERP Act contains leading-edge reforms to four important areas of the Corporations Law, fund raising, accounting standards, corporate governance and takeovers.
Reforms to fund raising will mean more efficient capital raising by Australian businesses but without sacrificing investor protection. These changes will also cut the cost of capital raising by small and medium-sized enterprises.
Reforms to the accounting standards will ensure that standards are robust, relevant and in tune with the major capital markets.
Corporate governance reforms will give directors more certainty and allow them to get on with the business of ensuring the company performs.
Streamlined takeover provisions will benefit shareholders, the corporate sector and the economy by encouraging better corporate performance along with better investor protection.