Chris Pearce has blasted the state and territory governments for standing in the way of sensible corporate governance law reforms in Australia following today’s Ministerial Council for Corporations (MINCO).
The challenge from the states and territories is over a proposal contained in the current Corporations Amendment Bill (No 1) 2006 to scrap the rule allowing just 100 shareholders to call an Extraordinary General Meeting. The removal of the 100 member rule is based on its potential for misuse. The resultant meetings can cost companies millions of dollars and are a tool of rogue lobby groups.
Under the Corporations Agreement, legislation of this nature requires the approval of three other jurisdictions, two of which must be states.
“The state and territory governments are the only stakeholders who are opposed to the removal of the 100 member rule. I have strongly urged the Attorneys-General to rethink their position and take on board the numerous representations they have received in relation to this issue from a broad cross section of industry and the community,” Mr Pearce said.
“The Federal Government has a Bill drafted and is ready to introduce it into the House of Representatives to implement these reforms, meanwhile the states and territories delay these crucial changes by playing petty politics. This is in stark contrast to organisations such as the Australian Shareholders Association who are fully behind the Federal Government’s proposal.
“After six years of consultation we have reached a position where all stakeholders agree that this is the best way forward. The ball remains firmly in the court of the states and territories to acknowledge these common-sense reforms. I look forward to them coming on board.
“The state and territory governments must put an end to their obstructionist attitude and get on with the job they were elected to do,” said Mr Pearce.
MELBOURNE
27 July 2006
Media contact: Gillian Harvey 03 9887 3890 or 0411 567 060