The Federal Opposition has vowed to push for key amendments to the Government’s draft Corporate Law Economic Reform Program (Audit Reform & Corporate Disclosure) Bill (CLERP 9).
Opposition spokesman on financial services Senator Stephen Conroy says the Labor Party will pursue the amendments which include provisions to require superannuation trustees and fund managers to not only vote their proxies but to declare their voting policies to fund members.
According to Federal Treasurer Peter Costello, the underlying objective of the draft bill is to improve the operation of the market by promoting transparency, accountability and shareholder rights. He believes that the bill takes a balanced approach to corporate regulation, “containing measures to enhance auditor independence, achieve better disclosure outcomes and improve enforcement arrangements for corporate misbehaviour, while still fostering innovation and wealth creation”.
However, Conroy says the legislation rates only a five out of 10 because it “has failed to tackle some of the worst practices leading to corporate excess”.
“The CLERP 9 Bill has failed to create a robust regulatory framework which first, ensures that boards are accountable, and second, ensures that shareholders are empowered,” he says.
“The self-regulatory approach of the Howard Government has failed to produce outcomes that benefit the shareholder, the employee or the retiree. This approach has been a green light to corporate greed,” Conroy says.
