Commonwealth of Australia Explanatory Memoranda

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CORPORATIONS AMENDMENT (IMPROVING ACCOUNTABILITY ON DIRECTOR AND EXECUTIVE REMUNERATION) BILL 2011

                                     2010-2011



       THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA



                         HOUSE OF REPRESENTATIVES




    CORPORATIONS AMENDMENT (IMPROVING ACCOUNTABILITY ON
        DIRECTOR AND EXECUTIVE REMUNERATION) BILL 2011




             SUPPLEMENTARY EXPLANATORY MEMORANDUM



               Amendments to be moved on behalf of the Government

                         (Circulated by the authority of the
       Parliamentary Secretary to the Treasurer, the Hon David Bradbury MP)



Application and transitional provisions
These amendments seek to delay the application of three measures contained in the Bill
from 1 July 2011 to 1 August 2011. These measures are:

·    The prohibition on key management personnel and their closely related parties
     from voting their shares in the non-binding vote at a company's annual general
     meeting on adoption of the remuneration report about the remuneration of key
     management personnel (para 3.15);

·    The prohibition on key management personnel and their closely related parties
     exercising undirected proxies on remuneration related resolutions (para 3.16);
     and

·    The measure to prevent `cherry-picking', i.e. the measure to require proxies to
     vote in the way specified in the appointments (para 6.12).