15th May 2013, 5:45 PM – Representatives Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 - Second Reading - Independent directors

The majority voted against a motion to agree to amendments introduced by Liberal MP Bruce Billson, which means that the amendments were unsuccessful. This division was a recommittal of a previous division on this motion.(Read more about why this recommittal occurred here. )

Mr Billson explained that his amendments would have enacted the following principles:

• that existing equal representation requirements in the Superannuation Industry (Supervision) Act 1993 and regulations be repealed;(Under equal representation, union and employer representatives dominate industry superannuation funds. See the basic equal representation rules here.

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• that these be replaced by requirements which give effect to the principle that each affected trustee board or group of trustees at a minimum will contain one-third in number independent directors or trustees;
• for the purpose of independents it will take the meaning of section 10 in the SI(S) Act;
• the independence rule would only be applied to public offer funds.(See those amendments and Mr Billson's explanation of them here.

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Background to the Bill

The Bill is the fourth and final legislative bundle implementing the Stronger Super reforms announced by the Labor Government in 2010.(More information about this Bill and the context surrounding it can be found here.) It introduces a number of corporate governance measures that arose out of the Review into the Governance, Efficiency, Structure and Operation of Australia’s Superannuation System (known as the Cooper Review) and the Government’s own consultations with industry, employer and consumer groups.

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