The Federal Government has released a Draft Bill containing proposed changes to the corporations law designed to reduce compliance costs for business.
Govt releases proposed changes to Corporations Law
The Draft Bill is a package amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 and is now available for public comment.
According to a statement released by the acting assistant treasurer Mathias Cormann, the proposed package of "repeal and streamlining amendments" will remove unnecessary regulation, clarify existing regulatory obligations and enhance the efficient operation of certain Government bodies.
“These initiatives are part of the Government’s plan to reduce $1 billion worth of red and green tape each year,” the statement read.
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.
The draft Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014, as well as an explanatory document on the proposed reforms, is available on the Treasury website. Submissions on the draft Bill close on 16 May 2014.