Footnotes

Chapter 1 - Introduction

[1]           Parliamentary Joint Statutory Committee on Corporations and Securities, Report on the Draft Second Corporate Law Simplification Bill 1996, November 1996; and Report on the Company Law Review Bill 1997, March 1998.

Chapter 5 - Reporting of Proceedings

[1]           Mr R Furlonger, Submission 4, p 5.

[2]           Australian Law Reform Commission, Submission 10, pp 3-4.

[3]           Corporate Governance International Pty Ltd, Submission 62, p 3.

[4]           Boral Ltd, Submission 14, p 1.

[5]           Boral Ltd, Submission 14, p 1.

[6]           Australian Competition & Consumer Commission, Submission 19, p 1. The ACCC commented that the reference to a material breach provided a safeguard against the reporting of vexatious and frivolous allegations.

[7]           Mr JA Sutton, Submission 57, p 3.

[8]           Joint Submission by the Australian Society of Certified Practising Accountants and The Institute of Chartered Accountants in Australia, Submission 73, p 6.

[9]           Mr Nick Renton, Submission 58, p 2.

[10]         Mr RI Barrett, Submission 5, p 4.

[11]         Ms Jan Wade MP, Submission 74, p i.

[12]         Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission  24,  p 2.

[13]         Mr RI Barrett, Submission 5, p 5.

[14]         Mr RI Barrett, Submsision 5, p 5.

[15]         Mr RI Barrett, Submission 5, p 5.

[16]         See Accounting Standard AASB 1034 “Information to be Disclosed in Financial Reports”.

[17]         Associate Professor Phil Hancock, Committee Hansard, 16 August 1999, p 155. International Standard IASC No 37.

[18]       Mr RI Barrett, Submission 5, p 5.

[19]         Henry Walker Group Ltd, Submission 12, p 3; Coles Myer Ltd, Submission 87, pp 4-5; Australian Listed Companies Association Inc, Submission 66, p 2.

[20]         Arnold Bloch Leibler, Submission 23, p 6.

[21]         Henry Walker Group Ltd, Submission 12, p 3; Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission 24, p 2; Ernst & Young, Submission 38, p 2.

[22]         Caltex Australia Ltd, Submission 30, pp 2-3.

[23]         Freehill Hollingdale and Page, Submission 40, p 3.

[24]         Mr Tim Hammon, Committee Hansard, 17 August 1999, p 271.

[25]         Correspondence to the PJSC, 1 September 1999, pp 4-5.

[26]         Accounting Association of Australia and New Zealand, Submission 16, p 1. See also Suncorp-Metway Ltd, Submission 17, p 2; Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission 24, p 2; Mr Peter Jooste QC, Submission 48, p 1; Association of Mining and Exploration Companies Inc, Submission 45, p 2; KPMG, Submission 71, p 3; Securities Institute, Submission 75, p 1; Australian Institute of Company Directors, Submission 47, p 3; Belmont Holdings Ltd, Submission 20, p 2.

[27]         Association of Mining and Exploration Companies Inc, Submission 45, p 2.

[28]         Investment & Financial Services Association Ltd, Submission 34, p 4.

[29]         Permanent Trustee Company Ltd, Submission 46, p 2.

[30]         Caltex Australia Ltd, Submission 30, p 3.

[31]         Mr John Wilkin,  Submission 21, p 3.

[32]         Mr John Wilkin, Committeee Hansard, 16 June 1999, p 42.

[33]         Arnold Bloch Leibler, Submission 23, p 6.

[34]         Mr John Fast, Committee Hansard, 16 June 1999, p 60.

[35]         Mr Paul Evans, Committee Hansard, 16 August 1999, p 140.

[36]         Mr John Wilkin, Committee Hansard, 16 June 1999, p 45.

[37]         Mr Paul Evans, Committee Hansard, 16 August 1999, p 140.

[38]         Ernst & Young, Submission 38, p 2.

[39]         KPMG, Submission 71, p 3.

[40]         Arnold Bloch Leibler, Submission 23, p 6.

[41]         Coles Myer Ltd, Submission 87, p 4.

Chapter 6 - Proprietary Company Registration

[1]           Section 136.

[2]           Section 138.

[3]           Section 139.

[4]           Mr John Wilkin, Submission 21, pp 4-5.

[5]           Mr John Wilkin, Submission 21, p 5.

[6]           Mr John Wilkin, Submission 21, p 5.

[7]           Mr John Wilkin, Submission 21, p 5.

[8]           Mr John Wilkin, Submission 21, p 6. See also Mr John Wilkin, Committee Hansard, 16 June 1999, p 42.

[9]           Mr John Wilkin, Submission 21, pp 6-7.

[10]         Joint Submission by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, Submission 73, p 3.

[11]         Joint Submission by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, Submission 73, p 3. Several other organisations expressed similar views to that of the Accounting Bodies. See Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission 25, p 2; Association of Mining and Exploration Companies Inc, Submission 45, p 2; the Australian Listed Companies Association Inc, Submission 66, p 2; and M.A.I. Services Pty Ltd, Submission 80, p 5.

[12]         Australian Law Reform Commission, Submission 10, p 4.

[13]         Australian Law Reform Commission, Submission 10, p 4.

[14]         Arnold Bloch Leibler, Submission 23, pp 6-7.

[15]         Corporate Network Ltd, Submission 39, p 1.

[16]         Corporate Network Ltd, Submission 39, p 2.

[17]         Corporate Network Ltd, Submission 39, p 2. The Corporate Network Ltd also noted that it is not uncommon for companies to lose their constitution and there are some situations where constitutions are required urgently.

[18]         West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 3.

[19]         Mr Laurie Factor, Committee Hansard, 16 August 1999, p 122.

[20]         Mr Peter Jooste QC, Submission 48, p 2.

[21]         Australian Institute of Company Directors, Submission 47, p 4.

[22]         Mr JA Sutton, Submission 57, p 2.

[23]         Ernst & Young, Submission 38, p 2 and Ms Jan Wade MP, Victorian Minister for Fair Trading, Submission 74, p ii.

[24]         Ms Jan Wade MP, Victorian Minister for Fair Trading, Submission 74, p ii.

[25]         The proposed amendment to section 117 of the Law was referred to the Committee by the Senate during debate on the Company Law Review Bill 1997. See Hansard, Senate, 24 June 1998, P3484.

[26]         Mr Laurie Factor, Committee Hansard, 16 August 1999, p 122.

[27]         Corporate Network Ltd, Submission 39, p 3.

[28]         Corporate Network Ltd, Submission 39, p 3.

[29]         Corporate Network Ltd, Submission 39, p 4.

Chapter 7 - Notice of Meetings

[1]           Section 249HA(3).

[2]           Investment & Financial Services Association Ltd, Submission 34, p 5.

[3]           Investment & Financial Services Association Ltd, Submission 34, p 6.

[4]           Investment & Financial Services Association Ltd, Submission 34, p 6.

[5]           Corporate Governance International Pty Ltd, Submission 62, p 9.

[6]           Corporate Governance International Pty Ltd, Submission 62, p 9.

[7]           Joint Submission by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, Submission 73, p 3.

[8]           Joint Submission by the Australian Society of Certified Practising Accountans and the Institute of Chartered Accountants in Australia, Submission 73, p 3.

[9]           Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[10]         GIO, Submission 29, p 1. See also Mr JA Sutton, Submission 57, p 1. Mr Sutton noted that the extended notice period is “impracticable” in stressful times, for example, where it may be necessary to arrange a series of meetings and that there would be difficulty in arranging appropriate venues.

[11]         Henry Walker Group Ltd, Submission 12, p 1.

[12]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2. See also National Can Industries Ltd, Submission 49, p 1.

[13]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[14]         Australian Institute of Company Directors, Submission 47, p 4.

[15]         Siddons Ramset Ltd, Submission 65, p 1.

[16]         Freehill Hollingdale and Page, Submission 40, p 3.

[17]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[18]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[19]         Ernst & Young, Submission 38, p 2.

[20]         Coles Myer Ltd, Submission 87, p 2.

[21]         Correspondence to the PJSC, 1 September 1999, p 3.

[22]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[23]         See Mr Peter Jooste QC, Submission 48, p 2 and Australian Listed Companies Association Inc, Submission 66, p 2.

[24]         The Law Society of Western Australia, Submission 52, p 2.

[25]         GIO, Submission 29, p 1.

[26]         Arnold Bloch Leibler, Submission 23, p 7.

[27]         Arnold Bloch Leibler, Submission 23, p 7.

[28]         Arnold Bloch Leibler, Submission 23, p 7.

[29]         Mr John Fast, Committee Hansard, 16 June 1999, p 57.

[30]         Mr David Cantrick-Brooks, Committee Hansard, 16 June 1999, p 79.

[31]         Mr David Cantrick-Brooks, Committee Hansard, 16 June 1999, p 80.

[32]         The Law Society of Western Australia, Submission 52, p 2.

[33]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[34]         Porter Western Ltd, Submission 2, p 1; Mr Peter Jooste QC, Submission 48, p 2.

[35]         Lynas Gold NL, Submission 72, p 2. See also Roebuck Resources NL, Submission 69, p 2; Amity Oil NL, Submission 70, p 1; Blakiston & Crabb, Submission 64, p 2; and Mr Rick Crabb, Committee Hansard, 16 August 1999, p 179.

[36]         Lynas Gold NL, Submission 72, p 2.

[37]         See for example Australian Institute of Company Directors, Submission 47, p 4; Mr Peter Jooste QC, Submission 48, p 2.

[38]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 3. See also Australian Law Reform Commission, Submission 10, p 4.

[39]         Australian Institute of Company Directors, Submission 47, p 4.

[40]         Association of Mining and Exploration Companies Inc, Submission 45, p 2. See also Australian Chamber of Commerce and Industry, Submission 59, p 1.

[41]         Allen Allen & Hemsley, Submission 9, pp 3-4; See also Caltex Australia Ltd, Submission 30, p 3; Mr Peter Jooste QC, Submission 48, p 2.

[42]         GIO, Submission 29, p 2.

[43]         Freehill Hollingdale and Page, Submission 40, p 3.

[44]         West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 4.

[45]         Mr John Wilkin, Submission 21, p 7. See also Australian Institute of Company Directors, Submission 47, p 4.

[46]         See for example Bristile Ltd, Submission 26, p 1.

[47]         Association of Mining and Exploration Companies Inc, Submission 45, p 2.

[48]         Preuss Feinauer and Associates, Submission 27, pp 1-2.

[49]         Australian Stock Exchange, Submission 44, p 7.

[50]         Australian Stock Exchange, Submission 44, p 7.

[51]         Australian Stock Exchange, Submission 44, pp 6-7.

[52]         GIO, Submission 29, p  2.

[53]         The Law Society of Western Australia, Submission 52, p 2.

[54]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 2.

[55]         Suncorp-Metway Ltd, Submission 17, p 2.

[56]         Australian Institute of Company Directors, Submission 47, p 4.

[57]         Securities Institute, Submission 75, p 1.

[58]         Australian Chamber of Commerce and Industry, Submission 59, pp 1-2.

[59]         Parliamentary Joint Statutory Committee on Corporations and Securities, Report on the Company Law Review Bill 1997, March 1998, pp 12-14, p 18.

Chapter 8 - Disclosure of Proxy Voting

[1]           Investment & Financial Services Association Ltd, Submission 34, p 6.

[2]           Investment & Financial Services Association Ltd, Submission 34, pp 6-7.

[3]           Investment & Financial Services Association Ltd, Submission 34, pp 7.

[4]           Investment & Financial Services Association Ltd, Submission 34, pp 7-8.

[5]           Australian Law Reform Commission, Submission 10, p 4.

[6]           Australian Law Reform Commission, Submission 10, p 4.

[7]           Corporate Governance International Pty Ltd, Submission 62, pp 10-11. See also Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, pp 231-32.

[8]           Corporate Governance International Pty Ltd, Submission 62, pp 11.

[9]           Corporate Governance International Pty Ltd, Submission 62, p 11.

[10]         Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 232.

[11]         Corporate Governance International Pty Ltd, Submission 62, p 11.

[12]         Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 237. See UK Secretary of State’s Speech, 19 July 1999, “Directors’ Remuneration”, tabled at the PJSC hearing on 17 August 1999.

[13]         Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 237.

[14]         Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 237.

[15]         See Investment & Financial Services Association Ltd, Submission 34, p 8.

[16]         Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 4. See also Mr Nick Renton, Submission 58, p 2.

[17]         Mr R Furlonger, Submission 4, p 6.

[18]         Association of Mining and Exploration Companies Inc, Submission 45, pp 2-3.

[19]         Australian Listed Companies Association Inc, Submission 66, p 3.

 

[20]         Mr RI Barrett, Submission 5, p 5. See also Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 4.

[21]         Mr RI Barrett, Submission 5, p 5.

[22]         Mr RI Barrett, Submission 5, p 6.

[23]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 4.

[24]         Mr RI Barrett, Submission 5, p 7.

[25]         Mr RI Barrett, Submission 5, p 8.

[26]         West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 4.

[27]         Rio Tinto Ltd, Submission 89, p 5.

[28]         Rio Tinto Ltd, Submission 89, p 6 and correspondence to the PJSC, 24 August 1999, Voting at Shareholder Meetings. See also report on additional proxy statistics, as required under section 251AA, filed with the ASX attached to the report, Voting at Shareholder Meetings.

[29]         Correspondence to the PJSC, 24 August 1999, Voting at Shareholder Meetings, p 1.

[30]         Correspondence to the PJSC, 24 August 1999, Voting at Shareholder Meetings, p 1. The table covers the Rio Tinto Ltd vote only and not the joint venture. The report noted that voting levels were similar for all items of business at the particular meeting.

[31]         Correspondence to the PJSC, 24 August 1999, Voting at Shareholder Meetings, p 3.

[32]         Henry Walker Group Ltd, Submission 12, p 3.

[33]         National Can Industries Ltd, Submission 49, p 1. See also Suncorp-Metway Ltd, Submission 17, p 2.

[34]         Arnold Bloch Leibler, Submission 23, p 8.

[35]         Arnold Bloch Leibler, Submission 23, p 8.

[36]         Australian Institute of Company Directors, Submission 47, p 4.

[37]         Mr JA Sutton, Submission 57, p 1.

[38]         Freehill Hollingdale and Page, Submission 40, p 4.

[39]         Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 4.

[40]         Arnold Bloch Leibler, Submission 23, pp 7-8.

[41]         See also Computershare Registry Services, Submission 68, p 3.

[42]         West Australia Joint Legislative Review Committee of the Australian Society of CPAs, The Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 4.

[43]         See Australian Institute of Company Directors, Submission 47, p 4 and Arnold Bloch Leibler, Submission 23, p 8.

[44]         Arnold Bloch Leibler, Submission 23, p 8.

[45]         The AWB Ltd  constitution provides that Class A shareholders can receive more shares and elect more directors according to their production.

[46]         Grains Council of Australia Inc, Submission 51, p 8.

[47]         Senate Rural and Regional Affairs and Transport Legislation Committee, Report on the Consideration of a Bill Referred to the Committee: Wheat marketing Legislation Amendment Bill 1998, June 1998, p 18.

[48]         Mr Neil Fisher, Committee Hansard, 17 February 1999, p 2.

[49]         Computershare Registry Services, Submission 68, p 3.

[50]         Section 251AA(1)(a).

[51]         Section 251AA(1)(b).

[52]         Computershare Registry Services, Submission 68, p 3; Rio Tinto Ltd, Submission 89, pp 5-7. See also Mr David Cantrick-Brooks, Committee Hansard, 16 June 1999, p 77.

[53]         Mr Ian L Falconer, Committee Hansard, 17 August 1999, p 191.

[54]         Computershare Registry Services, Submission 68, p 3.

[55]         Rio Tinto Ltd, Submission 89, p 7 and Mr Ian L Falconer, Committee Hansard, 17 August 1999, p 192.

[56]         Regulations to the UK Pensions Act, introduced on 1 July 1999, require pension fund trustees to declare the policy they have in directing the exercise of the voting rights attached to their investment.

[57]         Companies and Securities Advisory Committee, Shareholder participation in the modern listed public company, Discussion Paper, September 1999, paragraph 4.47.

[58]         Horsley’s Meetings: Procedure, Law and Practice, Ed W J Taggart, Butterworths 3^rd Edition, 1989, p 100.

Chapter 9 - Corporate Governance Board

[1]           Hansard, Senate, 24 June 1998, P3486.

[2]           The proposed amendments are set out in full in Appendix 3 of this Report

[3]           Australian Investors Association Ltd, Submission 25, see attached ASA/AIA Policy, p 6.

[4]           Australian Investors Association Ltd, Submission 25, see attached ASA/AIA Policy, p 6.

[5]           Australian Investors Association Ltd, Submission 25, see attached ASA/AIA Policy, p 6.

[6]           Australian Investors Association Ltd, Submission 25, see attached ASA/AIA Policy, p 6.

[7]           Mr Ted Rofe, Committee Hansard, 18 August 1999, p 308.

[8]           M.A.I. Services Pty Ltd, Submission 80, pp 2-3.

[9]           M.A.I. Services Pty Ltd, Submission 80, p 3.

[10]         Mr Shann Turnbull, Committee Hansard, 18 August 1999, p 358.

[11]         Arnold Bloch Leibler, Submission 23, pp 8-9.

[12]         Mr JA Sutton, Submission 57, p 1.

[13]         Australian Law Reform Commission, Submission 10, pp 4-5. See also Mr John Wilkin, Submission 21, p 7 and Mr Peter Jooste QC, Committee Hansard, 16 August 1999, p 162.

[14]         Henry Walker Group Ltd, Submission 12, p 3.

[15]         Australian Institute of Company Directors, Submission 47, p 5.

[16]         Arnold Bloch Leibler, Submission 23, pp 8-9. See also Law Institute of Victoria, Submission 55, p 3 and Australian Listed Companies Association Inc, Submission 66, p3.

[17]         Mr John Wilkin, Submission 21, p 7.

[18]         West Australia Joint Legislative Review Committee of the Australian Society of CPAs, The Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 4.

[19]         Association of Mining and Exploration Companies Inc, Submission 45, p 3.

[20]         Roebuck Resources NL, Submission 69, p 2. See also Amity Oil NL, Submission 70, p 2; Lynas Gold NL, Submission 72, p 2; KPMG, Submission 71, pp 3-4, Blakiston & Crabb, Submission 64, p 2; Preuss Feinauer and Associates, Submission 27, p 2 and Mr Laurie Factor, Committee Hansard, 16 August 1999, p 128.

[21]         Mr Rick Crabb, Committee Hansard, 16 August 1999, p 180.

[22]         Australian Stock Exchange, Submission 44, p 9.

[23]         Mr Peter Jooste QC, Submission 48, p 2. See also Lynas Gold NL, Submission 72, p 2, Amity Oil NL, Submission 70, p 2 and Roebuck Resources NL, Submission 69, p 2.

[24]         Law Institute of Victoria, Submission 55, p 3.

[25]         Correspondence to PJSC, 1 September 1999, pp 3-4.

[26]         National Can Industries Ltd, Submission 49, p 1.

[27]         Chartered Institute of Company Secretaries, Victoria Branch, Submission 24, p 3. See also Mr Peter Jooste QC, Submission 48, p 2; Belmont Holdings Ltd, Submission 20, p 2; Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 4 and the Securities Institute, Submission 75, p 1.

[28]         GIO, Submission 29, p 3.

[29]         GIO, Submission 29, p 3. See also Mr Tim Hammon, Committee Hansard, 17 August 1999, p 270 who advised that a two tier model would give rise to legal difficulties such as determining which board took precedence and confuse shareholders.

[30]         Mr Colin Parker, Committee Hansard, 16 June 1999, pp 36-37.

[31]         Law Institute of Victoria, Submission 55, p 3.

[32]         Australian Stock Exchange, Submission 44, p 9.

[33]         Australian Institute of Company Directors, Submission 47, p 4.

[34]         Mr Trevor Robertson, Submission 28, p 11 quoting from the OECD Economic Surveys 1998 Australia (1998, p 115).

[35]         Corporate Governance: A Guide for Investment Managers and Corporations, July 1999, 9.2.1, Guideline 1 – Annual Disclosure.

[36]         Corporate Governance: A Guide for Investment Managers and Corporations, July 1999, 12.6.1 - The Audit Committee, 12.6.2 - The Remuneration Committee and 12.6.3 - The Nomination Committee.

[37]         Investment & Financial Services Association Ltd, Submission 34, pp 8-9.

[38]         Australian Institute of Company Directors, Submission 47, p 5.

[39]         Parliamentary Joint Statutory Committee on Corporations and Securities, Report on the Company Law Review Bill 1997, March 1998, pp 7-17.

[40]         West Australia Joint Legislative Review Committee of the Australian Society of CPAs, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 4.

[41]         Mr Laurie Factor, Committee Hansard, 16 August 1999, p 128.

[42]         Mr Shann Turnbull, Committee Hansard, 18 August 1999, p 358.

[43]         Final Report of the Hampel Committee on Corporate Governance, 28 January 1998, para 3.12.

Chapter 10 - Audit Committee

[1]           Hansard, Senate, 24 June 1998, P3585.

[2]           Mr John Wilkin, Submission 21, p 8.

[3]           Mr Stan Rogers, Submission 8, pp 1-2.

[4]           Arthur Anderson, Submission 22, pp 1-2.

[5]           Mr Gerard Meade, Committee Hansard, 16 June 1999, p 27. See also Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 4.

[6]           Australian Law Reform Commission, Submission 10, p 5. See also Preuss Feinauer and Associates, Submission 27, p 2.

[7]           Australian Stock Exchange, Submission 44, p 9. See also KPMG, Submission 71, pp 3-4.

[8]           Australian Stock Exchange, Submission 44, p 10.

[9]           Association of Mining and Exploration Companies, Submission 45, p 3.

[10]         Accounting Association of Australia and New Zealand, Submission 16, p 2. See also Australian Institute of Company Directors, Submission 47, p 5; Investment & Financial Services Association Ltd, Submission 34, pp 8-9; Mr Tim Hammon, Committee Hansard, 17 August 1999, pp 270-71 and Mr Ted Rofe, Committee Hansard, 18 August 1999, p 308.

[11]         Australian Listed Companies Association Inc, Submission 66, p 3. See also Mr Rick Crabb, Committee Hansard, 16 August 1999, p 180.

[12]         Group of 100 Inc, Submission 15, p 1. See also the Chartered Institute of Company  Secretaries in Australia, Victoria Branch, Submission 24, p 3.

[13]         Mr Grahame Young, Committee Hansard, 16 August 1999, p 166.

[14]         Mr Grahame Young, Committee Hansard, 16 August 1999, p 172.

[15]         ASX Guidance Note: Disclosure of corporate governance practices: listing rule 4.10, para 30.

[16]         ASX Guidance Note: Disclosure of corporate governance practices: listing rule 4.10, para 31.

[17]         See Mr Laurie Factor, Committee Hansard, 16 August 1999, p 129.

[18]         Mr Laurie Factor, “Corporate Governance Practices of Listed Companies in WA”, Australian Journal of Corporate Law, Vol 6 No 3, October 1996, pp 380-409.

[19]         Mr Laurie Factor, “Corporate Governance Practices of Listed Companies in WA”, Australian Journal of Corporate Law, Vol 6 No 3, October 1996, pp 391.

[20]         Mr Laurie Factor, “Corporate Governance Practices of Listed Companies in WA”, Australian Journal of Corporate Law, Vol 6 No 3, October 1996, pp 392.

[21]         Mr Laurie Factor, “Corporate Governance Practices of Listed Companies in WA”, Australian Journal of Corporate Law, Vol 6 No 3, October 1996, p 406.

[22]         Ms Tracie Arkley-Smith, “Audit committee disclosure: time to regulate?”, Australian CPA, August 1999, pp 36-39.

[23]         Ms Tracie Arkley-Smith, “Audit committee disclosure: time to regulate?”, Australian CPA, August 1999, p 38.

[24]         Ms Tracie Arkley-Smith, “Audit committee disclosure: time to regulate?”, Australian CPA, August 1999, p 38.

Chapter 11 - Obligation to Report Suspicions of Fraud

[1]           A Research Study on Financial Reporting and Auditing – Bridging the Expectation Gap, Commissioned by the ASCPA and ICAA, 1994.

[2]           Report of the Financial Reporting and Audit Expectations Gap Task Force to the Joint Standing Committee of the ASCPA and ICAA “Beyond the Gap”, June 1996.

[3]           Mr Colin Parker, Committee Hansard, 16 June 1999, p 39.

[4]           Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 5.

[5]           Mr Colin Parker, Committee Hansard, 16 June 1999, p 39.

[6]           Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 5.

[7]           Mr Colin Parker, Committee Hansard, 16 June 1999, p 39.

[8]           Mr Stan Rogers, Submission 8, p 2

[9]           Accounting Association of Australia and New Zealand, Submission 16, p 2.

[10]         Accounting Association of Australia and New Zealand, Submission 16, p 2. See also Mr Tim Hammon, Committee Hansard, 17 August 1999. pp 271-72.

[11]         Chartered Institute of Company Secretaries, Victoria, Submission 24, p 3. See also Securities Institute, Submission 75, p 1 and Arthur Andersen, Submission 22, p 2.

[12]         Mr RI Barrett, Submission 5, p 8.

[13]         Mr RI Barrett, Submission 5, p 8.

[14]         Mr John Wilkin, Submission 21, p 9. Mr Wilkin also submitted that it was theoretically desirable to provide directors and executive officers with a defence for not being later found liable for failing to report fraud and improper conduct, if they do report suspicions to someone. The ‘someone’, however, should be a government authority like the ASIC.

[15]         Australian Investors Association, Submission 25, p 17.

[16]         Mr RI Barrett, Submission 5, p 8.

[17]         Mr R I Barrett, Submission 5, p 8.

[18]         Mr RI Barrett, Submission 5, p 8.

[19]         Arnold Bloch Leibler, Submission 23, p 9.

[20]         Australian Institute of Company Directors, Submission 47, p 5.

[21]         Australian Institute of Company Directors, Submission 47, p 5.

[22]         Mr RI Barrett, Submission 5, pp 8-9.

[23]         Australian Law Reform Commission, Submission 10, p 5.

[24]         Australian Law Reform Commission, Submission 10, p 5.

[25]         Association of Mining and Exploration Companies Inc, Submission 45, p 3.

[26]         Arnold Bloch Leibler, Submission 23, p 9.

[27]         Mr Tim Hammon, Committee Hansard, 17 August 1999, p 272.

[28]         Bristile Ltd Submission 26, p 1.

[29]         Australian Institute of Company Directors, Submission 47, p 5.

[30]         Ms Jan Wade MP, Victorian Minister for Fair Trading, Submission 74, p i.

[31]         Mr JA Sutton, Submission 57, p 4.

[32]         Henry Walker Group Ltd, Submission 12, p 3. See also Australian Institute of Company Directors, Submission 47, p: 5 and the Australian Listed Companies Association Inc, Submission 66, p 3 and KPMG, Submission 71, p 4.

[33]         Coles Myer Ltd, Submission 87, p 5.

[34]         Mr Tim Hammon, Committee Hansard, 17 August 1999, p 272.

[35]         See section 334(2) of the Corporations Law. Accounting standards like regulations are legislative instruments subject to parliamentary scrutiny and can be disallowed by either House.

[36]         Recent changes to the Corporations Law and several ASIC class orders do not require companies to appoint auditors. See section 341(1) of the Corporations Law and ASIC Class Order 98/1417, “Audit Relief for Proprietary Companies”.

Chapter 12 - Director’s Power to Call a Meeting

[1]           Mr RI Barrett, Submission 5, p 9. Regulation 40(1) of Table A incorporated this norm from 1 July 1962 until its repeal. Before that, the rule derived from the English Table A of 1862 was that the convening of general meetings was a matter for the directors as a board. See also Mr Laurie Factor, Committee Hansard, 16 August 1999, p 129.

[2]           Mr RI Barrett, Submission 5, p 9. See also Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 235.

[3]           Investment & Financial Services Association Ltd, Submission 34, p 9. See also Mr Sandy Easterbrook, Committee Hansard, 17 August 1999, p 235;  Mr Ted Rofe, Committee Hansard, 18 August 1999, p 308 and the West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 5, which suggested that section 249CA should operate as a “whistleblower” section.

[4]           Investment & Financial Services Association Ltd, Submission 34, p 9.

[5]           Mr John Wilkin, Submission 21, p 9.

[6]           Australian Law Reform Commission, Submission 10, pp 5-6.

[7]           Australian Law Reform Commission, Submission 10, p 6.

[8]           Henry Walker Group Ltd, Submission 12, p 3.

[9]           Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 1.

[10]         Ernst & Young, Submission 38, p 3.

[11]         Australian Institute of Company Directors, Submission 47, p 6.

[12]         See Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission 24, p 3; Belmont Holdings Ltd, Submission 20, p 3; KPMG, Submission 71, pp 4-5.

[13]         Boral Ltd, Submission 14, p 2.

[14]         Belmont Holdings Ltd, Submission 20, p 2. See also Mr Boris Ganke, Committee Hansard, 17 August 1999, p 247. It was estimated that the cost of convening a meeting for very large companies was in the order of $2 million. For smaller companies with 15,000 members the cost would be $30,000, or $2 per shareholder.

[15]         Mr JA Sutton, Submission 57, p 2.

[16]         Australian Institute of Company Directors, Submission 47, p 6.

[17]         Association of Mining and Exploration Companies Inc, Submission 45, p 3. See also Australian Listed Companies Association Inc, Submission 66, p 3.

[18]         Mr R Furlonger, Submission 4, p 6. See also Mr Boris Ganke, Committee Hansard, 17 August 1999, p 247.

[19]         Australian Institute of Company Directors, Submission 47, p6.

[20]         Accounting Association of Australia and New Zealand, Submission 16, p 2.

[21]         Arnold Bloch Leibler, Submission 23, pp 9-10.

[22]         Bristile Ltd, Submission 26, p 2.

[23]         KPMG, Submission 71, p 4.

[24]         Joint Submision by the Australian Society of CPAs and The Institute of Chartered Accountants in Australia, Submission  73, p 6.

[25]         Australian Stock Exchange, Submission 44, p 11. See also Law Institute of Victoria, Submission 55, p 3.

[26]         Law Institute of Victoria, Submission 55, p 3.

[27]         Ernst & Young,  Submission 38, p  3.

[28]         Coles Myer Ltd, Submission 89, p 5.

[29]         Mr Boris Ganke, Committee Hansard, 17 August 1999, pp 247-48.

[30]         See Wishart v Foster (1961) 4 FLR 72 and Winter v McAdam (1957) 1 FLR 210. The Law does not prescribe the method of convening a meeting that is called by a director.

Chapter 13 - Receipt of Proxy Appointments

[1]           GIO, Submission 29, p 3.

[2]           West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 5. See also Investment & Financial Services Association Ltd, Submission 34, p 9 and Australian Institute of Company Directors, Submission 47, p 6.

[3]           Corporate Governance International Pty Ltd, Submission 62, p 12.

[4]           See Henry Walker Group Ltd, Submission 12, p 3 and Australian Institute of Company Directors, Submission 47, p 6.

[5]           Chartered Institute of Company Secretaries in Australia Ltd, Submission 1, p 3.

[6]           Australian Law Reform Commission, Submission 10, p 6. See also Mr Ted Rofe, Committee Hansard, 18 August 1999, p 303

[7]           Mr John Wilkin, Submission 21, p 9.

[8]           Arnold Bloch Leibler, Submission 23, p 10.

[9]           Mr Nick Renton, Submission 58, p 2.

[10]         See Mr R Furlonger, Submission 4, p 6; Mr J Tilburn, Submission 11, p 1; Mr JA Sutton, Submission 57, p 4 and Corporate Governance International Pty Ltd, Submission 62, p 12.

[11]         Australian Law Reform Commission, Submission 10, p 6.

[12]         Mr Nick Renton, Submission 58, p 2.

[13]         Mr Nick Renton, Submission 58, p 3.

[14]         Investment & Financial Services Association Ltd, Submission 34, pp 9-10.

[15]         Mr David Cantrick-Brooks, Committee Hansard, 16 June 1999, pp 74-77.

[16]         Henry Walker Group Ltd, Submission 12, p 3.

[17]         Mr John Wilkin, Submission 21, p 9. See also Australian Listed Companies Association Inc, Submission 66, p 3.

[18]         Law Institute of Victoria, Submission 55, p 3.

[19]         Joint Submission by the Australian Society of CPA and the Institute of Chartered Accountants in Australia, Submission 73, p 6.

[20]         Correspondence to the Chairman of the PJSC, 3 September 1999. The definition of “sign” was repealed by the Company Law Review Act 1998, Schedule 2, Part 1.

[21]         Correspondence to the Chairman of the PJSC, 3 September 1999.

[22]         Australian Stock Exchange, Submission 44, p 11; KPMG, Submission 71, p 5 and Arnold Bloch Leibler, Submission 23, p 10.

[23]         Association of Mining and Exploration Companies Inc, Submission 45, p 3.

[24]         Australian Law Reform Commission, Submission 10, p 6.

[25]         Chartered Institute of Company Secretaries in Australia Ltd, Victoria Branch, Submission 24, p 3.

[26]         Australian Shareholders’ Association Ltd, Submission tabled at hearing on 18 August 1999, p 2 and Mr Ted Rofe, Committee Hansard, 18 August 1999, pp 302-3.

[27]         Parliamentary Joint Statutory Committee on Corporations and Securities, Report on the Company Law Review Bill 1997, March 1998, p 17.

Chapter 14 - Directors’ Remuneration

[1]           Sections 300A(2) and 300A(3) of the Company Law Review Act 1998.

[2]           See for example, Association of Mining and Exploration Companies Inc, Submission 45, p 4; GIO Australia Holdings Ltd, Submission 29, p 3; Chartered Institute of Company Secretaries, Victoria Branch, Submission 24, p 4 and Arnold Bloch Leibler, Submission 23, pp 10-11.

[3]           Australian Investors Association Ltd, Submission 25. See attached AIA policy statement, p 19.

[4]           Investment & Financial Services Association Ltd, Submission 34, p 10.

[5]           Investment & Financial Services Association Ltd, Submission 34, pp 10-11. This Code was replaced in June 1998 by The Combined Code based on the recommendations of the UK Hampel Committee on Corporate Governance. The disclosure of directors’ remuneration is mandated under Article B.3 “Disclosure” which states “The company’s annual report should contain a statement of remuneration policy and details of the remuneration of each director”. Article B.3.1 of The Combined Code also provides that “The Board should report to the shareholders each year on remuneration. The report should form part of, or be annexed to, the company’s annual report and accounts.”

[6]           Investment & Financial Services Association Ltd, Submission 34, p 10. See also Corporate Governance: A Guide for Investment Managers and Corporations, July 1999, 12.11.

[7]           Ms Jennifer Hill, Remuneration Disclosure for Directors & Executives in Australia, Investment & Financial Services Association Ltd, February 1996.

[8]           Ms Jennifer Hill, Remuneration Disclosure for Directors & Executives in Australia, Investment & Financial Services Association Ltd, February 1996, p 27.

[9]           Group of 100 Inc, Submission 15, p 1.

[10]         Accounting Association of Australia and New Zealand, Submission 16, pp 2-3.

[11]         Accounting Association of Australia and New Zealand, Submission 16, pp 2-3.

[12]         Investment & Financial Services Association Ltd, Submission 34, p 11.

[13]         RewardSolve, Submission 32, p 2.

[14]         RewardSolve, Submission 32, p 2.

[15]         Australian Law Reform Commission, Submission 10, p 6.

[16]         West Australia Joint Legislative Review Committee of the Australian Society of CPA, the Institute of Chartered Accountants and the Chartered Institute of Company Secretaries, Submission 18, p 5.

[17]         Arthur Anderson, Submission 22, p 2.

[18]         Freehill Hollingdale and Page, Submission 42, pp 1-3.

[19]         See for example Securities Institute, Submission 75, p 1.

[20]         Ernst & Young, Submission 31, p 1.

[21]         Joint Submission by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, Submission 73, p 6.

[22]         Mr Colin Parker, Committee Hansard, 16 June 1999, pp 28-29.

[23]         See ASIC Media Release 99/220, Surveillance of Company Financial Reports, 1 July 1999.

[24]         Ms Jillian Segal, Committee Hansard, 17 August 1999, p 212.

[25]         Mr Douglas Niven, Committee Hansard, 17 August 1999, p 215-16.

[26]         Ms Jillian Segal, Committee Hansard, 17 August 1999, p 216.

[27]         Association of Mining and Exploration Companies Inc, Submission 45, p 4.

[28]         Australian Institute of Company Directors, Submission 47, pp 7-8. See also KPMG, Submission 71, p 5.

[29]         Mr Laurie Factor, Committee Hansard, 16 August 1999, pp 129-30.

[30]         See for example, Ernst & Young, Submission 31, p 2.

[31]         Ernst & Young, Submission 31, p 2.

[32]         Australian Stock Exchange, Submission 44, p 11.

[33]         Allen Allen & Hemsley, Submission 9, p 4. See also National Can Industries Ltd, Submission 49, p 2 and Boral Ltd, Submission 14, p 2.

[34]         Allen Allen & Hemsley, Submission 9, p 4.

[35]         Suncorp-Metway Ltd, Submission 17, p 2.

[36]         Bristile Ltd, Submission 26, p 2.

[37]         Australian Institute of Company Directors, Submission 47, p 6.

[38]         Australian Institute of Company Directors, Submission 47, pp 6-7.

[39]         See for example Boral Ltd, Submission 14, p 2. See also Australian Institute of Company Directors, Submission 47, p 8 and National Can Industries Ltd, Submission 49, p 2.

[40]         Porter Western Ltd, Submission 2, p 1.

[41]         Allen Allen & Hemsley, Submission 9, p 4.

[42]         Suncorp-Metway Ltd, Submission 17, p 2.

[43]         Arnold Bloch Leibler, Submission 23, p 10.

[44]         Arnold Bloch Leibler, Submission 23, p 11.

[45]         Freehill Hollingdale and Page, Submission 40, p 5.

[46]         Association of Mining and Exploration Companies Inc, Submission 45, p 4. See also Bristile Ltd, Submission 14, p 2.

[47]         See for example KPMG, Submission 71, p 5.

[48]         Ernst & Young, Submission 31, pp 1-3.

[49]         Australian Institute of Company Directors, Submission 47, pp 7-8.

[50]         Caltex Australia Ltd, Submission 30, p 4.

[51]         Mr John Wilkin, Submission 21, p 10.

[52]         Arnold Bloch Leibler, Submission 23, p 11.

[53]         GIO, Submission 29, p 2.

[54]         Mr JA Sutton, Submission 57, p 2.

[55]         Ernst & Young, Submission 38a, p 6.

[56]         Ernst & Young, Best Practice in the Disclosure of Directors’ and Executives’ Remuneration, Corporate Governance Series, April 1999, tabled at the PJSC hearing on 16 June 1999.

[57]         Mrs Ruth Picker, Committee Hansard, 16 June 1999, p 83-84.

[58]         GIO, Submission 29, p 2. See also Freehill Hollingdale and Page, Submission 40, p 5.

[59]         Australian Institute of Company Directors, Submission 47, p  7; “Overseas experience of this increased disclosure approach, is that there will be a “ratcheting-up” effect; Mr Peter Jooste QC, Submission 48, p 2.

[60]         GIO, Submission 29, p 2.

[61]         Caltex Australia Ltd, Submission 30, p 4. See also Permanent Trustee Company Ltd, Submission 46, p 2.

[62]         Australian Law Reform Commission, Submission 10, p 6.

[63]         The Forest Place Group Ltd, Submission 36, pp 1-2.

[64]         Association of Mining and Exploration Companies Inc, Submission 45, p 4

[65]         GIO, Submission 29, p 3.

[66]         Sir Richard Greenbury, Directors’ Renumeration, Gee Publishing Ltd, London, July 1995, p 11.

Chapter 16 - Other Matters

[1]           See for example Caltex Australia Ltd, Submission 30, pp 4-5 and Ernst & Young, Submissions 31 and 38a, pp 4-5 and pp 1-5.

[2]           Mrs Ruth Picker, Committee Hansard, 16 June 1999, p 83.

[3]           Dr Elizabeth Boros, Committee Hansard, 16 June 1999, p 102.

[4]           Dr Elizabeth Boros, Committee Hansard, 16 June 1999, p 102.

[5]           Freehill Hollingdale and Page, Submission 3, p 1.

[6]           Mr Stephen Stockwell, Submission 86, p 2.

[7]           Law Institute of Victoria, Submission 55a, pp 1-5.