The Parliamentary Secretary to the Treasurer, Chris Pearce, today called on Kevin Rudd to start displaying the leadership he claims to possess. Mr Rudd has the ability to pick up the phone and ensure his State ALP counterparts support important corporate governance reforms.
“Mr Rudd had a fantastic opportunity last night to assure the business community at the Business Council of Australia Dinner that he would support the abolition of the 100 Member Rule, and support the 5 per cent threshold. Mr Rudd has failed the leadership test,” said Mr Pearce.
“For too long, the State Premiers have been withholding their support for these amendments to the Corporations Act 2001. The Bill has had the benefit of extensive consultation and has been favourably received by key stakeholders, including the Australian Shareholders Association. These reforms are also in line with comparable overseas jurisdictions,” Mr Pearce observed.
The threshold reflects the greater cost of holding an extraordinary general meeting (EGM) as opposed to other forms of shareholder participation, requiring 5 per cent of the shareholders, rather than simply 100 shareholders, to support a call for an EGM. These changes would result in significant cost savings which would in turn be passed on to the shareholder.
“Mr Rudd is all out of excuses. It's time for Mr Rudd to come clean – is he the leader of the ALP, or just another empty suit in the Opposition Leader's Office? Holding up these reforms is ridiculous.
“The window of opportunity still exists for Mr Rudd to convince his State colleagues to get on board in order to help protect the interests of mum and dad investors,” remarked Mr Pearce.
02 February 2007
Melbourne
Contact: Conor O'Brien 03 9887 3890 or 0402 970 515