The Minister for Financial Services, Superannuation and Corporate law, Chris Bowen MP, today publicly released the final Regulations and explanatory material in relation to the proposed reforms to termination payments.
The Regulations:
- provide a definition for 'base salary';
- clarify and expand the types of benefits that are (and are not) subject to shareholder approval; and
- prescribe circumstances in which a benefit is given in connection with a person's retirement.
"These reforms will empower shareholders to reject excessive termination payments and promote responsible remuneration practices," Mr Bowen said.
'The Government has made sensible changes following both public and targeted consultations.
'Importantly, the Government has provided clarity around the definition of 'termination benefit', specifically, to ensure statutory entitlements are not included as payments that require shareholder approval.
"I would like to express my appreciation to all the stakeholders who contributed to the development of these Regulations."
The draft Regulations were exposed for a four week public consultation with the exposure Bill, on 5 May 2009. Following that, a revised draft of the Regulations, addressing the issues raised in the initial consultations, was released for further, targeted consultation.
The Regulations have been sent to the Ministerial Council for Corporations for their approval in accordance with the requirements of the Corporations Agreement 2002.
The Regulations and related explanatory material can be found at Attachment A and Attachment B.
3 September 2009
Corporations Amendment Regulations 2009 (Improving Accountability on Termination Payments Bill) - Regulations and Explanatory Material
The Minister for Financial Services, Superannuation and Corporate Law has released the final Regulations and explanatory material relating to the Corporations Amendment Regulations 2009, which accompanies the Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009.
The Regulations provide a definition for 'base salary', clarify and expand the types of benefits that are (and are not) subject to shareholder approval, and prescribe circumstances in which a benefit is given in connection with a person's retirement.
Contact Address:
Manager
Corporate Reporting and Accountability Unit
Corporations and Financial Services Division
The Treasury
Langton Crescent
PARKES ACT 2600
Email: terminationbenefits@treasury.gov.au
For enquiries, please call Ronita Ram (02) 6263 3168 or Sonia Fernandes (02) 6263 2021.
Attachment A: Corporations Amendment Regulations 2009 (Improving Accountability on Termination Payments Bill) - Explanatory Material (PDF 23 KB)
Attachment B: Corporations Amendment Regulations 2009 (Improving Accountability on Termination Payments Bill) - Regulations (PDF 39 KB)