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Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011

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7082

2010-2011

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011

 

(1)     Schedule 1, item 8, page 7 (after line 29), after Part 2D.8, insert:

Part 2D.9—Limit on benefits for key management personnel

206N  Limit on benefits for key management personnel

             (1)  Despite any other provision of this Act, an entity must not give, or propose to give, a benefit in connection with a member of the key management personnel of the entity which in any financial year exceeds, or is capable of exceeding, an amount that is 30 times the average wage or salary of a full-time employee of the entity.

Note 1:       The recipient of the benefit need not be the member of the key management personnel.

Note 2:       Key management personnel has the meaning given by section 9.

             (2)  If the benefit is given, or is proposed to be given, in connection with a member of the key management personnel of the entity for a period of less than 12 months in a financial year, the amount calculated under subsection (1) is taken to be reduced proportionately to reflect the number of days in that year to which the benefit relates.

             (3)  In this section:

benefit includes the amount of the benefit or the money value of the benefit (if it is not, or not solely, a payment of a monetary amount).

entity includes related entities, so that the total or all benefits given by related entities in relation to a member of the key management personnel must not exceed the relevant amount.

full-time employee does not include any person who is a member of the key management personnel or who holds a similar position, or any other person prescribed by the regulations.

             (4)  For the purposes of subsection (1), the regulations may prescribe a method or methods for the calculation of the average wage or salary of a full-time employee of an entity.

[limit on benefits for key management personnel]