12th May 2011 – Representatives Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 - Consideration in Detail - 25 per cent

The majority voted against amendments introduced by Liberal MP Tony Smith.

The amendments were:

(1) Schedule 1, item 9, page 9 (lines 4 and 5), omit "votes cast on a resolution that the remuneration report be adopted were", substitute "total votes that were entitled to be cast on a resolution that the remuneration report be adopted were cast".

(2) Schedule 1, item 13, page 13 (lines 6 and 7), omit "votes cast on a resolution that the remuneration report be adopted were", substitute "total votes that were entitled to be cast on a resolution that the remuneration report be adopted were cast".

(3) Schedule 1, item 13, page 13 (lines 9 and 10), omit "votes cast on a resolution that the remuneration report be adopted were", substitute "total votes that were entitled to be cast on a resolution that the remuneration report be adopted were cast".

(4) Schedule 1, item 19, page 17 (lines 29 and 30), omit "votes cast were", substitute "total votes that were entitled to be cast were cast".

Mr Smith explained that these amendments ensure that the 25 per cent referred to in the bill relates to all available votes rather than being limited to the votes cast at a particular annual general meeting.

One member, Nationals MP Tony Crook, rebelled and crossed the floor to vote 'no' with the Government.(Read more about what it means to cross the floor in our FAQ section. )

Background to the bill

The bill was introduced to implement some of the recommendations made by the Productivity Commission in its recent inquiry into executive remuneration in Australia, including providing for a ‘two strikes and re-election’ process when a company’s remuneration report receives a 25 per cent or more ‘no’ vote in two consecutive years.(Read more about the bill in its bills digest. More information, including its explanatory memorandum, is available here.)

References