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Corporations Amendment (No. 1) Bill 2008 [2009]

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5705

2008-2009

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

Corporations Amendment (No. 1) Bill 2008

 

 

(1)           Schedule 1, page 3 (after line 6), after item 1, insert:

1A  Paragraph 200F(2)(b)

Repeal the paragraph, substitute:

                     (b)  the value of the benefit, when added to the value of all other payments (if any) already made or payable in connection with the person’s retirement from board or managerial offices in the company and related bodies corporate, does not exceed the amount worked out under subsection (4).

1B  Subsections 200F(3), (4) and (5)

Repeal the subsections, substitute:

             (3)  For the purposes of paragraph (2)(b), other payments includes:

                     (a)  payments of the market value of shares or share-based payments that become exercisable in connection with a person’s retirement from a board or managerial office in the company or in a related body corporate; and

                     (b)  payments by way of pension or lump sum, including a superannuation, retiring allowance, superannuation gratuity or similar payment.

             (4)  The amount worked out under this subsection is:

                     (a)  if the period or periods during which the person held a board or managerial office in the company or in a related body corporate total less than 12 months—the amount that is in the same proportion to $1,000,000 as that total period is to 12 months; or

                     (b)  if the period or periods during which the person held a board or managerial office in the company or in a related body corporate totals 12 months or more—$1,000,000.

1C  Paragraph 200G(1)(c)

Omit “subsection (2)”, substitute “subsection (3)”.

1D  Subsection 200G(1)

Omit “In applying paragraph (c), disregard any pensions or lump sums that section 200F applies to.”, substitute “In applying paragraph (c), the value of the benefit includes any pensions or lump sums that section 200F applies to.”.

1E  Subsections 200G(2) and (3)

Repeal the subsections, substitute:

             (2)  For the purposes of paragraph (1)(c), other payments includes:

                     (a)  payments of the market value of shares or share-based payments that become exercisable in connection with a person’s retirement from a board or managerial office in the company or in a related body corporate; and

                     (b)  payments by way of pension or lump sum, including a superannuation, retiring allowance, superannuation gratuity or similar payment.

             (3)  The payment limit is $1,000,000.

1F  Subsections 200G(5) and (6)

Repeal the subsections.

[limitation on CEO termination payments]