Submission to Treasury on proposed amendments to Corporations Act relating to dividends

• Date:27 Jan 2012
• Type:Policy Submission

This submission is in response to the discussion paper, Proposed Amendments to the Corporations Act, released by the Federal Treasury, which deals with the dividends payment test in s254T: proposed amendments to the parent entity reporting requirements and changing the financial year of a company.

The submission states that section 254T of the Corporations Act should be amended to include an express solvency test for the payment of dividends by a company; the link with the accounting standards in section 254T should be removed; and the proposed amendments to allow companies to prepare parent entity financial statements alongside their consolidated financial statements, if they so elect.

Download our Submission to Treasury on Proposed Amendments to the Corporations Act Relating to Dividends (PDF 3MB).