Explanatory MemorandumCirculated By the Authority of the Minister for Financial Services, Superannuation and Corporate Law, the Hon Chris Bowen Mp
General outline and financial impact
The Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 (the Bill) strengthens the regulatory framework relating to the payment of termination benefits to company directors and executives.
Date of effect: Sections 1 to 3 of the Bill commences on Royal Assent. Schedule 1, part 1 of the Bill commences on the day after Royal Assent. Schedule 1, part 2 commences immediately after part 1 commences. Schedule 1, part 3 commences on the day after Royal Assent.
Financial impact: This Bill has no significant impact on Commonwealth expenditure or revenue.
Compliance cost impact: Nil.
Summary of regulation impact statement
Regulation impact on business
Impact: The Office of Best Practice Regulation has been consulted and has advised that a Regulation Impact Statement is not required due to the Government's prior announcement to progress reforms in this area. Instead, a post-implementation review of the new amendments will be made within one to two years of the commencement of the new requirements.