Senator the Hon Mathias Cormann

A draft Bill containing proposed improvements to the corporations law is now available for public comment. 

The proposed changes will remove unnecessary regulation, clarify existing regulatory obligations and enhance the efficient operation of certain Government bodies.

The key measures include:

• the removal of the obligation on directors to call a general meeting at the request of only 100 shareholders;
• reducing restrictions on the circumstances in which companies can pay dividends;
• removing the obligation on unlisted disclosing companies to prepare remuneration reports; and
• exempting companies limited by guarantee from the need to appoint or maintain an auditor when they either do not need to prepare a financial report or have their financial report audited.

The amendments proposed in this Bill are expected to make the corporations law more efficient and deliver a significant reduction in compliance costs for affected businesses.

These initiatives are part of the Government’s plan to reduce $1 billion worth of red and green tape each year.

The draft Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014, as well as an explanatory document on the proposed reforms, is available at www.treasury.gov.au.  Submissions on the draft Bill close on 16 May 2014.