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Hansard
- Start of Business
- BUSINESS
- BILLS
- BUSINESS
- BILLS
- ADDRESS BY THE PRIME MINISTER OF NEW ZEALAND
- PETITIONS
- NOTICES
- BUSINESS
- COMMITTEES
- BILLS
- MOTIONS
- MATTERS OF PUBLIC IMPORTANCE
- COMMITTEES
- DELEGATION REPORTS
- BILLS
- COMMITTEES
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BILLS
- Tax Laws Amendment (2010 Measures No. 5) Bill 2010
- Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011
- Taxation of Alternative Fuels Legislation Amendment Bill 2011, Excise Tariff Amendment (Taxation of Alternative Fuels) Bill 2011, Customs Tariff Amendment (Taxation of Alternative Fuels) Bill 2011, Energy Grants (Cleaner Fuels) Scheme Amendment Bill 2011
- BUSINESS
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BILLS
- Governance of Australian Government Superannuation Schemes Bill 2011, ComSuper Bill 2011, Superannuation Legislation (Consequential Amendments and Transitional Provisions) Bill 2011
- Taxation of Alternative Fuels Legislation Amendment Bill 2011, Excise Tariff Amendment (Taxation of Alternative Fuels) Bill 2011, Customs Tariff Amendment (Taxation of Alternative Fuels) Bill 2011, Energy Grants (Cleaner Fuels) Scheme Amendment Bill 2011
- Governance of Australian Government Superannuation Schemes Bill 2011, ComSuper Bill 2011, Superannuation Legislation (Consequential Amendments and Transitional Provisions) Bill 2011
- ADJOURNMENT
- DOCUMENTS
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QUESTIONS ON NOTICE
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Mining (Question No. 10)
(Brown, Sen Bob, Wong, Sen Penny) -
Internet (Question No. 442)
(Ludlam, Sen Scott, Conroy, Sen Stephen) -
Defence: Staffing (Question No. 456)
(Johnston, Sen David, Evans, Sen Christopher) -
Treasury: Staffing (Question No. 612)
(Siewert, Sen Rachel, Wong, Sen Penny) -
Australian Reinsurance Pool Corporation: Hospitality (Question No. 666)
(Abetz, Sen Eric, Wong, Sen Penny)
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Mining (Question No. 10)
Page: 3248
Senator SHERRY (Tasmania—Minister Assisting on Deregulation and Public Sector Superannuation, Minister for Small Business and Minister Assisting the Minister for Tourism) (11:02): I have a couple of points on this amendment from the Liberal-National Party. On the issues of the threshold of 25 per cent, the Productivity Commission did consult widely. It is obviously a matter of considerable interest, and indeed contention, for many.
While the first two strikes occur where a company's remuneration report receives a no vote of 25 per cent or more, there are still several protective measures in place to ensure that there is not a destabilising effect on company operations and that minority shareholders cannot abuse the process to inappropriately undermine company stability. Following the second strike, shareholders will vote to determine whether the directors will need to stand for re-election. The spill resolution can only pass with 50 per cent or more of eligible votes cast. If it passes then the spill meeting, which must be held within 90 days, also requires over 50 per cent of votes to pass. The two-strikes process allows shareholders to express their concern with the remuneration report and compels a company to outline their response to these concerns.
As the PC concluded, a threshold of 25 per cent would better align with levels commonly accepted as demonstrating serious shareholder concern about remuneration, particularly in light of current voting patterns. Clearly it provides a greater level of accountability than a threshold of 50 per cent. In short, the two-strikes test empowers shareholders to take action against unresponsive boards while avoiding any destabilising effect on companies.
The senator asked a question about the minimum. The minimum is not a legislative minimum; it is the minimum established in the company's constitution, so that is the relevant figure. We believe it is appropriate, we do not believe it is set too low and we oppose the opposition's amendment.
The TEMPORARY CHAIRMAN ( Senator Trood ): The question is that the amendment standing in the name of the opposition be agreed to. A division is required. Under the standing orders for sitting of the Senate on Monday mornings, divisions have to be postponed until a later hour of the day, so we cannot proceed with this further now.
Progress reported.