Vol 7 Issue 12 July 1 2009

  • Date:01 Jul 2009
  • Type:Boardroom Report

AICD’s reservations about Termination Payments Bill

AICD expressed deep reservations about the draft Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 and believed it could cause real damage if passed.

So noted AICD CEO John Colvin and AICD chairman John Story when they appeared before the Productivity Commission’s public hearings as part of an inquiry into executive remuneration in Sydney on 17 June.

Colvin observed that the draft Bill’s provisions, which require shareholder approval for termination packages worth one year’s base pay or more, were drafted in such a way that nobody would want to use them and interfered with how pay was negotiated with executives.

ASIC’s guidance for year-end reports

The Australian Securities and Investments Commission (ASIC) has highlighted a number of areas on which boards should focus during the upcoming reporting period.

They include the same areas highlighted by ASIC for the 31 December 2008 financial reports, as well as some additional issues identified in its recent review of those reports.

A survival checklist for directors

There are a host of steps directors of family-owned or small-tomedium sized enterprises can take to ensure their organisations survive turbulent economic times, says BDO Kendalls partner Andrew Fielding.

Are you ready for the new Cartel Act?

The Trade Practices Amendment (Cartel Conduct and Other Measures) Act 2009 has been passed by Federal Parliament and will come into force 28 days after it receives Royal Assent, which is expected within the next few days.

Michael Coleman appointed FRC deputy chair

AICD’s nominated representative to the Financial Reporting Council (FRC), Michael Coleman, has been appointed to the newly created post of FRC deputy chairman.

Coleman is also the chairman of AICD’s Reporting Committee and is KPMG’s national managing partner, Risk and Regulation, and risk manager for Asia Pacific. He has been representing AICD on the FRC since 2006.

The FRC is responsible for providing broad oversight of the process for setting accounting and auditing standards and for monitoring the effectiveness of auditor independence requirements in Australia. It includes both members nominated by key stakeholder groups and those appointed independently of stakeholder interests.

 

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