Vol 7 Issue 15 August 12 2009

  • Date:12 Aug 2009
  • Type:Boardroom Report

Director trading framework shifting?

Directors are widely expected to hold shares in the listed companies on whose boards they sit in order to align their interests with those of shareholders. But their willingness to do so could decline if new proposals are implemented.

AICD is concerned that implementing recommendations made by the Corporations and Market Advisory Committee (CAMAC) in its Aspects of Market Integrity Report to ban director share trading within arbitrary blackout periods could upset the alignment of directors’ and investors’ interests.

How training made McDonald’s Australia a leader

Australian boards are letting the country down by not developing from within, not paying enough attention to succession planning and not training their people well enough from the grass roots.

This was the view of Peter Ritchie AO, current deputy chairman of Seven Network and the man who brought McDonalds to Australia, when addressing an AICD Leaders’ Edge luncheon in Brisbane recently.

Corporate governance does matter

New research examining 10 Asian markets confirms that companies with higher corporate governance ratings tend to outperform low-rated companies on an annualised basis for holding periods of one year or longer.

The findings were announced by GovernanceMetrics International (GMI) and recently published by UBS Investment Research in a report titled Corporate Governance in Asia.

When tax debts start rising

The tax man is the world’s largest creditor and is likely to feature in liquidations far more than any other creditor. So what should you do if your tax debts are mounting in tough times?

Cliff Sanderson, a director of Restructuring Works, believes the Australian Taxation Office (ATO) is unfairly criticised about its debt collection procedures. “There are some things to bear in mind,” he says. “Firstly, businesses are expected to pay tax and so the ATO should be regarded as a creditor just like other creditors of a business. Secondly, if a business does not pay tax or pays substantially late, that business is getting an unfair advantage over its competitors who are doing the right thing.

A reminder about greenhouse and energy reporting

Directors are advised to ensure that their organisations have reviewed whether they trigger any of the National Greenhouse and Energy Reporting Act’s reporting thresholds. If they do, they will need to apply to register by 31 August and report by 31 October 2009.

 

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