Corporations Amendment (Improving Accountability on Termination Payments) Act 2009 (115 of 2009)
Schedule 1 Amendments
Part 1 Main amendments
Corporations Act 2001
31 Subsections 200F(3) and (4)
Repeal the subsections, substitute:
(3) This subsection applies if the relevant period for the person is less than 1 year. The amount worked out under this subsection is:
where:
estimated annual base salary is a reasonable estimate of the base salary that the person would have received from the company and related bodies corporate during the relevant period if the relevant period had been 1 year.
Note: The relevant period for the person is defined in subsection (5).
(4) This subsection applies in every other case. The amount worked out under this subsection is:
(a) if the relevant period is 1 year - the base salary that the person received from the company and related bodies corporate during the relevant period; or
(b) if the relevant period is more than 1 year but less than 2 years - the average annual base salary that the person received from the company and related bodies corporate during the relevant period, worked out as if:
(i) the relevant period were 2 years; and
(ii) the persons annual base salary for the second year were a reasonable estimate of what the person would have received as base salary after the first year of the relevant period had the relevant period been 2 years; or
(c) if the relevant period is 2 years - the average annual base salary that the person received from the company and related bodies corporate during the relevant period; or
(d) if the relevant period is more than 2 years but less than 3 years - the average annual base salary that the person received from the company and related bodies corporate during the relevant period, worked out as if:
(i) the relevant period were 3 years; and
(ii) the persons annual base salary for the third year were a reasonable estimate of what the person would have received as base salary after the second year of the relevant period had the relevant period been 3 years; or
(e) if the relevant period is 3 years or more - the average annual base salary that the person received from the company and related bodies corporate during the last 3 years of the relevant period.