19 July 2004
Welcome to the July edition of Clayton Utz Corporate Insights. In this edition we look at some of the impacts of the CLERP 9 Act:
By Charles Rosedale.
Although not a major focus of CLERP 9, fundraising will face some changed rules under the new regime. These changes particularly affect three areas: on-sales of securities; prospectuses; product disclosure statements (PDSs).
By Andrew Hay and Tony Lalor.
One of the key elements of CLERP 9 is the reform of audit requirements and the introduction of auditor independence standards.
By Andrew Hay.
Not unexpectedly, director and executive remuneration features heavily in CLERP 9. One of the Act's primary emphases is on greater levels of disclosure to shareholders. The new requirements in relation to executive remuneration and termination benefits apply to financial years commencing on or after 1 July 2004.
By Will Moncrieff.
Section 912A(1)(aa) of the Corporations Act now requires financial services licensees to have arrangements for managing conflicts of interest. This obligation is additional to the general duty to provide financial services efficiently, honestly and fairly.
By Alison Groves.
CLERP 9 contains a number of important changes to the policing and enforcement of the Corporations Act. Apart from the expected increases in maximum fines for companies, there are new protections for corporate whistleblowers and stiff increases in disqualification periods for errant directors.
By David Landy.
Shorter, clearer meeting notices and greater use of electronic communications are at the heart of CLERP 9's reform of company meeting procedures.
