By Rebecca Evans
The Federal Government’s CLERP 9 reforms passed through the Senate last week after the Australian Labor Party secured the backing of the Democrats.
Labor party Senator Stephen Conroy says the changes to CLERP 9 would impact corporate governance in Australia.
“These amendments implement Labor’s policy to increase shareholder activism in Australia,” Senator Conroy says.
Among the changes won by Labor include the requirement for Australia’s top 300 companies to consult with shareholders when electing a chairman, if the candidate has previously chaired another of the top 300 listed company.
Labor was also successful in amending the CLERP provisions for company secretaries and selected executive employees of corporations to disclose their preference and participation or otherwise in voting proxies.
If the changes pass the vote in the lower house, any executive termination payments worth more than a year’s wages will have to be approved by shareholders.
Labor also received support for its appeal for meetings of the FinancialReporting Council to be held publicly, tougher jail sentences for directors who are found to be in breach of their duties, and better disclosure of past work history and affiliations from executive management.
