Source: https://www.legislation.gov.au/Details/C2009A00115
Timestamp: 2018-01-20 06:49:29
Document Index: 226449534

Matched Legal Cases: ['art 3', 'art 2', 'art 1', 'art 1', 'art 2', 'art 2', 'art 1', 'art 2']

Details: C2009A00115
- C2009A00115
Act No. 115 of 2009 as made
Originating Bill: Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009
Date of Assent 23 Nov 2009
C2009A00115
Part 3—Application 15
[Assented to 23 November 2009]
This Act may be cited as the Corporations Amendment (Improving Accountability on Termination Payments) Act 2009.
2 Section 9 (paragraph (b) of the definition of benefit)
(b) when used in Division 2 of Part 2D.2 (sections 200 to 200J)—has the meaning given by section 200AB.
3 Section 9 (definition of board or managerial office)
5 Section 9 (definition of payment)
Omit “200A”, substitute “200”.
6 Section 9 (definition of person)
7 Before section 200A
200 Interpreting this Division
For the purposes of this Division, in determining whether a benefit is given:
(a) give a broad interpretation to benefits being given, even if criminal or civil penalties may be involved; and
(b) the economic and commercial substance of conduct is to prevail over its legal form.
200AA Meaning of managerial or executive office
If the company is a disclosing entity
(1) For a company to which section 300A applies for the previous financial year for the company, a person holds a managerial or executive office in the company during the current financial year if the person’s details were included in the directors’ report for that previous financial year for the company in accordance with paragraph 300A(1)(c).
Note: A person holding a managerial or executive office ceases to do so if the person’s details are not included in the next directors’ report. However, this is not relevant to whether the person has retired from an office or position in the company (see paragraph 200A(1)(f)).
(2) The person is taken to hold the managerial or executive office for the whole of the current financial year unless and until the person retires from an office or position in the company before the end of that year.
(3) For a body corporate not covered by subsection (1), a managerial or executive office for the body corporate is:
(b) any other office or position in connection with the management of the body corporate’s affairs that is held by a person who also holds an office of director of the body corporate or a related body corporate.
200AB Meaning of benefit
(1) For the purposes of this Division, a benefit includes any of the following:
(b) any kind of real or personal property;
(c) any legal or equitable estate or interest in real or personal property;
(d) any legal or equitable right;
(e) a thing specified in regulations made for the purposes of this paragraph.
(2) However, for the purposes of this Division, a benefit does not include a thing specified in regulations made for the purposes of this subsection.
Note: The heading to section 200A is altered by omitting “office” and substituting “an office or position”.
8 Subsection 200A(1)
After “office” (wherever occurring), insert “or position”.
Note: The following heading to subsection 200A(1) is inserted “General rules”.
9 At the end of subsection 200A(1)
; and (f) when working out whether a person has retired from an office or position, disregard whether or not the person’s details are included in a directors’ report in accordance with paragraph 300A(1)(c).
10 After subsection 200A(1)
(1A) Without limiting subsection (1), a benefit is given in connection with a person’s retirement from an office or position if the benefit is given in circumstances specified in regulations made for the purposes of this subsection.
11 Subsection 200A(2)
Note: The following heading to subsection 200A(2) is inserted “Related benefits”.
12 Subsection 200B(1)
(1) An entity mentioned in subsection (1AA) must not give a person a benefit in connection with a person’s (the retiree’s) retirement from an office, or position of employment, in a company or a related body corporate if:
13 Subsection 200B(1A)
Omit “person’s”, substitute “retiree’s”.
14 Subsection 200B(3)
Omit “a person’s retirement from an office” (wherever occurring), substitute “the retiree’s retirement from an office or position”.
15 Paragraph 200C(1)(a)
Omit “board or managerial office”, substitute “managerial or executive office”.
16 Subsection 200C(1) (note)
17 Paragraph 200D(1)(a)
18 Subsection 200D(1) (note)
19 Subsection 200E(1)
Conditions for member approval
(1) For the purposes of section 200B, the conditions set out in subsections (1B), (2) and (2A) must be satisfied for there to be member approval under this section for the giving of the benefit to the person in connection with the retiree’s retirement from the office or position.
(1A) For the purposes of section 200C, the conditions set out in subsections (1B) and (2) must be satisfied for there to be member approval under this section for the giving of the benefit.
(1B) The first condition is that the giving of the benefit be approved by a resolution passed at a general meeting of:
20 Subsection 200E(2) (first sentence)
Repeal the sentence, substitute: “The second condition is that details of the benefit must be set out in, or accompany, the notice of the general meeting that is to consider the resolution.”.
Note: The following heading to subsection 200E(2) is inserted “Second condition”.
21 Subparagraph 200E(2)(b)(i)
22 After subsection 200E(2)
Third condition—for approvals relating to section 200B
(2A) The third condition is that at the general meeting, a vote on the resolution must not be cast (in any capacity) by or on behalf of:
(a) the retiree; or
(b) an associate of the retiree.
(2B) Subsection (2A) does not prevent the casting of a vote if:
(a) it is cast by a person as a proxy appointed by writing that specifies how the proxy is to vote on the resolution; and
(b) it is not cast on behalf of the retiree or an associate of the retiree.
(2C) The regulations may prescribe cases where subsection (2A) does not apply.
23 Subsection 200E(3)
Omit “The approval extends to”, substitute “For the purposes of subsection (1B), the resolution may give approval by approving”.
Note: The following heading to subsection 200E(3) is inserted “Meeting may approve a lesser benefit”.
24 Subsection 200E(4)
Omit “The approval”, substitute “Member approval under this section”.
Note: The following heading to subsection 200E(4) is inserted “Effect of approval on directors’ duties”.
25 Paragraph 200F(1)(a)
After “office”, insert “or position”.
26 Subsection 200F(2)
After “an office”, insert “or position”.
27 Subparagraph 200F(2)(a)(ii)
28 Paragraph 200F(2)(b)
Omit “other payments (if any) already made or payable”, substitute “other benefits (if any) already given”.
29 Paragraph 200F(2)(b)
Omit “board or managerial offices”, substitute “offices or positions”.
30 Paragraph 200F(2)(b)
Omit all the words after “exceed”, substitute “the amount worked out under whichever of subsections (3) and (4) is applicable”.
31 Subsections 200F(3) and (4)
(3) This subsection applies if the relevant period for the person is less than 1 year. The amount worked out under this subsection is:
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:
(ii) the person’s 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:
(ii) the person’s 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.
32 Subsection 200F(5)
Omit “an office”, substitute “a managerial or executive office”.
33 Paragraph 200G(1)(a)
Omit “a board or managerial office (the relevant office)”, substitute “an office or position”.
34 Paragraph 200G(1)(c)
35 Paragraph 200G(1)(c)
36 Paragraph 200G(1)(c)
Omit “the payment limit set by subsection (2)”, substitute “the amount worked out under whichever of subsections (2) and (3) is applicable”.
37 Subsections 200G(2) and (3)
(2) This subsection applies if the relevant period for the person is less than 1 year. The amount worked out under this subsection is:
(3) This subsection applies in every other case. The amount worked out under this subsection is:
38 Subsection 200G(5)
39 Subsection 200G(6)
40 Subsection 200J(1)
(1) If an entity (the giver) contravenes section 200B by giving a benefit to a person (the recipient), then the amount of the benefit, or the money value of the benefit if it is not a payment:
(1A) An amount repayable under subsection (1) to the giver:
Note: The heading to section 200J is altered by omitting “in trust for company” and substituting “on trust and repaid”.
41 Schedule 3 (table items 35, 36 and 37)
Omit “25 penalty units”, substitute “180 penalty units”.
42 Paragraph 200F(1)(a)
(a) a benefit that is a payment made in respect of leave of absence to which the person is entitled under an industrial instrument; or
(1) The amendments made by Part 1 apply in relation to a retirement from an office, or position of employment, held under:
(a) an agreement entered into; or
(b) an agreement renewed or extended; or
(c) an agreement, for which a variation of a condition of the agreement happens;
on or after the commencement of that Part.
(2) If the amendments made by Part 1 apply in relation to a person’s retirement from an office or position in a company, the person’s relevant period for the purposes of section 200F or 200G of the Corporations Act 2001 applies to managerial or executive offices held by the person:
(a) in the company or related bodies corporate; and
(b) before, on or after the commencement of that Part.
(3) Despite the amendment made by Part 2 (the Part 2 amendment), paragraph 200F(1)(a) of the Corporations Act 2001 (as amended by Part 1 of this Schedule) continues to apply, in relation to agreements entered into before 1 January 1991, as if the Part 2 amendment had not been made.
Senate on 10 September 2009]
(135/09)