The Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 will require shareholder approval of directors' termination payments which exceed one year's base pay. At present it is possible for a director to receive a termination payment equivalent to seven years' base pay without shareholder approval. The Bill was introduced in the House of Representatives on 24 June 2009 and subsequently referred to the Senate Economics Legislation Committee for inquiry and report. On 27 July the inquiry presented its interim report and stated that it required more time to complete it final report, which is now likely to be published during the first half of September. Meanwhile, the Australian Parliament's Department of Parliamentary Services has provided a useful digest of the Bill here. Submissions to the Legislation Committee's inquiry have also been published: see here.
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