House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP)

Chapter 7 - Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations Legislation Amendment (Deregulatory and Other Measures)

7.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

7.2 The Bill amends the Corporations Act 2001 (Corporations Act) and the Australian Securities and Investments Commission Act 2001 to streamline corporate law to reduce the regulation burden on business and the community. The key measures will:

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to better balance the rights of shareholders to raise issues with a company and the costs to companies of being required to call and hold a general meeting;

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improve and reduce remuneration reporting requirements;

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clarify the circumstances in which a financial year may be less than 12 months;

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exempt certain companies limited by guarantee from the need to appoint or retain an auditor;

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improve the operation of the Takeovers Panel by allowing takeover matters to be dealt with more efficiently; and

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extend the Remuneration Tribunal's remuneration setting responsibility to certain Corporations Act bodies.

Human rights implications

7.3 This Bill does not engage any of the applicable rights or freedoms.

Conclusion

7.4 This Bill is compatible with human rights as it does not raise any human rights issues.