Footnotes

Footnotes

Chapter Two - Background on corporate governance

[1]        Institute of Chartered Accountants, Submission 7, p. 2.

[2]        Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 56.

[3]        Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 56.

[4]        ASX Limited, Submission 14, p. 2.

[5]        ASFA, Submission 2, p. 2; Regnan Governance Research, Submission 22, p. 2; Chartered Secretaries Australia, Submission 8, p. 3.

[6]        Treasury, Submission 17, p. 4.

[7]        Australasian Investor Relations Association, Submission 12, p. 1.

[8]        Treasury, Submission 17, p. 8.

[9]        ASX Limited, Submission 14, p. 4.

[10]      Mr Matthew Brine, Treasury, Committee Hansard, Canberra, 15 April 2008, pp. 70-71.

[11]      ASX Limited, Submission 14, p. 5.

[12]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 58.

[13]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, pp. 58-59.

[14]      Law Council of Australia, Submission 21, p. 1.

[15]      Chartered Secretaries Australia, Submission 8, p. 3.

[16]      Institute of Chartered Accountants, Submission 7, p. 5.

[17]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 4.

[18]      Business Council of Australia, Submission 29, p. 2.

[19]      Mr Nathan Fabian, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p. 51.

[20]      ASX Limited, Submission 14, p. 2.

Chapter Three - Improving information flows

[1]        Riskmetrics, Submission 13, p. 3.

[2]        Riskmetrics, Submission 13, p. 3.

[3]        Riskmetrics, Submission 13, p. 3. Statistics come from Riskmetrics annual Voting Outcome reports. Controversial resolutions are deemed to be those where one or more features deviate from accepted standards of good governance, eg ASX Corporate Governance Council.

[4]        Business Council of Australia, Submission 29, p. 8.

[5]        Nowak and McCabe, Submission 5, pp 2 – 3.

[6]        Nowak and McCabe, Submission 5, p. 3.

[7]        Mr Ross Clare, ASFA, Committee Hansard, Canberra, 15 April 2008, p. 25.

[8]        Mr Ross Clare, ASFA, Committee Hansard, Canberra, 15 April 2008, p. 23.

[9]        Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 69.

[10]      ASFA, Submission 2, p. 2.

[11]      Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 3.

[12]      Australasian Investor Relations Association, Submission 12, p. 3.

[13]      Mr Michael O'Sullivan, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 61. 

[14]      Mr Michael O'Sullivan, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 62.

[15]      AICD, Submission 35, Attachment 1, p. 2.

[16]      AICD, Submission 35, Attachment 1, p. 2.

[17]      ASX Limited, Submission 14, p. 3.

[18]      Australasian Investor Relations Association, Submission 12, p. 3.

[19]      Australasian Investor Relations Association, Submission 12, p. 4.

[20]      Mr Gordon Noble, Responsible Investment Consulting, Committee Hansard, Sydney, 16 April 2008, p. 38.

[21]      Mr Gordon Noble, Responsible Investment Consulting, Committee Hansard, Sydney, 16 April 2008, p. 33.

[22]      Regnan Governance Research, Submission 22, p. 7.

[23]      Mr Gordon Noble, Responsible Investment Consulting, Committee Hansard, Sydney, 16 April 2008, p. 36.

[24]      Mr Gordon Noble, Responsible Investment Consulting, Committee Hansard, Sydney, 16 April 2008, p. 35; Mr Erik Mather, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p. 47.

[25]      Mr Erik Mather, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p. 48.

[26]      United Nations Principles of Responsible Investment. Mr Erik Mather, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p. 44.

[27]      Mr Kevin McCrann, AICD, Committee Hansard, Sydney, 16 April 2008, p. 64.

[28]      Australian Prudential Regulation Authority, 'The sole purpose test', Superannuation Circular No.III.A.4, February 2001, accessed on 22 May 2008 at http://www.apra.gov.au/Superannuation/upload/III-A-4-The-Sole-Purpose-Test.pdf

[29]      Mr Erik Mather, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p. 44.

[30]      Parliamentary Committee on Corporations and Financial Services, Corporate responsibility: Managing risk and creating value, June 2006, p. 74.

[31]      ACSI, Submission 11, pp 4-5.

[32]      Mr Kevin McCann, AICD, Committee Hansard, Sydney, 16 April 2008, p. 58.

[33]      Nowak and McCabe, Submission 5, p. 1.

[34]      Nowak and McCabe, Submission 5, p. 1.

[35]      Nowak and McCabe, Submission 5, pp 1-2.

[36]      Treasury, Submission 17, p. 5.

[37]      Dr Shann Turnbull, Submission 23, p. 2, p. 6.

[38]      Sections 249J and 314 of the Corporations Act; see for example McConvill, J. An introduction to CLERP 9, LexisNexis Butterworths, 2004, pp 151-152.

[39]      See for example Chartered Secretaries Australia, Submission 8, p. 5; AICD, Submission 25, p. 49. 

[40]      Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 21.

[41]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 20 08, pp 6-7.

[42]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 9; CSA, Submission 8, p. 5.

[43]      Chartered Secretaries Australia, Submission 8, p. 15.

[44]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 10. See section 314(2) of the Corporations Act.

[45]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 63.

[46]      AICD, Submission 25, p. 49.

[47]      AICD, Submission 25, p. 50.

[48]      Institute of Chartered Accountants, Submission 7, pp 2-3. They also emphasised that the importance of effective reporting also applied to institutional shareholders.

[49]      Institute of Chartered Accountants, Submission 7, pp 4-5.

[50]      Australasian Investor Relations Association, Submission 12, p. 5. CSA also recommended that all statutory information should be allowed to be provided electronically. See CSA, Submission 33, p. 2.

[51]      ASA, Submission 38, p. 6.

[52]      Chartered Secretaries Australia, Submission 8, p. 11. See also AICD, Submission 25, p. 44.

[53]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 2.

[54]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 5.

[55]      Mr Tim Sheehy and Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 5.

[56]      AICD, Submission 25, p. 44.

[57]      AICD, Submission 25, pp 44-45.

[58]      Business Council of Australia, Submission 29, p. 6.

[59]      Chartered Secretaries Australia, Submission 8, p. 12.

[60]      AICD, Submission 25, p. 47.

[61]      Chartered Secretaries Australia, Submission 8, p. 12.

[62]      CSA, 'Rethinking the AGM', Discussion Paper, 2008, p. 9. They suggested that this should not extend to unlisted public companies such as not-for-profit companies.

[63]      Chartered Secretaries Australia, Submission 8, p. 13.

[64]      ASA, Submission 38, p. 4.

[65]      CSA, 'Rethinking the AGM', Discussion Paper, 2008, pp 12-13.

[66]      Boardroomradio, Submission 30, p. 7.

[67]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, pp 16-17.

[68]      Mr Stephen Mayne, Submission 18, pp 2-5.

[69]      Business Council of Australia, Submission 29, p. 9.

[70]      Treasury, Submission 17, p. 7.

[71]      ACTU, Submission 24, p. 7.

[72]      Explanatory Memorandum, Exposure Draft Corporations Amendment Bill (No. 2) 2006, p. 5; Treasury, Submission 17, pp 6-7.

[73]      The committee made an exception in the case of mutuals. See for example, Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Exposure Draft of the Corporations Amendment (No. 2) Bill 2005, June 2005, pp 3-9.

[74]      Mr Matthew Brine, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 73.

[75]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 12.

[76]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 63.

[77]      ASX, ASX Listing Rules, 'Introduction and objectives', accessed on 19 June 2008 at http://www.asx.com.au/ListingRules/chapters/Introduction.htm

[78]      ASX, ASX Listing Rules, Chapter 3 – Continuous disclosure, accessed on 19 June at http://www.asx.com.au/ListingRules/chapters/Chapter03.pdf

[79]      Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 20.

[80]      Mr John Murray, Boardroomradio, Committee Hansard, Canberra, 15 April 2008, pp 14-15.

[81]      Boardroomradio, Submission 30, p. 9.

[82]      Mr Bill Gair, Boardroomradio, Committee Hansard, Canberra, 15 April 2008, p. 19.

[83]      AICD, Submission 25, p. 28.

[84]      Responsible Investment Consulting, Submission 4, p. 4.

[85]      Responsible Investment Consulting, Submission 4, p. 5.

[86]      Ms Marian Kljakovic, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 74.

[87]      AICD, Submission 25, p. 28.

[88]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 59.

[89]      Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 69.

[90]      Chartered Secretaries Australia, Submission 8, p. 17.

[91]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 3.

[92]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 3; Chartered Secretaries Australia, Submission 8, p. 18;  ACSI, Submission 11, p. 8.

[93]      ACSI, Submission 11, p. 9.

[94]      CSA, Submission 33, p. 3.

[95]      ASA, Submission 38, p. 4.

[96]      ASX Limited, Submission 14, pp 7-8; ASA, Submission 38, p. 4.

[97]      Treasury, Submission 40, p. 2.

[98]      Mr Christopher Johnston, Family Business Australia, Committee Hansard, Canberra, 15 April 2008, pp 36-37.

[99]      Treasury, Submission 40, p. 1.

[100]    This idea is explored in detail in a paper by Senator Andrew Murray titled 'A proposal for simplifying the legal form and regulation of small for-profit businesses and not-for-profit entities', April 2008.

[101]    ASX, 'Short Selling', ASX Public Consultation, 28 March 2008, accessed 9 May 2008 at: http://www.asx.com.au/about/pdf/short_selling_public_consultation_paper.pdf, p. 5.

[102]    See for example, Goldwasser, V. Stock Market Manipulation and Short Selling, Centre for Corporate Law and Securities Regulation, CCH Australia, 1999, pp 18-19.

[103]    ASX, 'Short Selling', ASX Public Consultation, 28 March 2008, accessed 9 May 2008 at: http://www.asx.com.au/about/pdf/short_selling_public_consultation_paper.pdf, p. 4. 

[104]    Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 23.

[105]    Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 24.

[106]    See for example, Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 24.

[107]    The Australasian Investor Relations Association is amongst those that have called for naked short selling to be banned.  See Durkin, P. 'Cover up: call for end to naked shorts', Australian Financial Review, 8 May 2008, p. 4.

[108]    Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 24.

[109]    Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 68.

[110]    Australasian Investor Relations Association, Submission 39, p. 1.

[111]    Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 64.

[112]    Senator the Hon. Nick Sherry, 'Corporate governance in today's volatile market condition', Speech to Riskmetrics Group, Melbourne, 28 April 2008, accessed 9 May 2008 at: http://minscl.treasurer.gov.au/DisplayDocs.aspx?doc=speeches/2008/010.htm&pageID=005&min=njs&Year=&DocType=

[113]    ASX, 'Public Consultation on Short Selling', Media release, 28 March 2008, accessed 9 May 2008 at: http://www.asx.com.au/about/pdf/mr280308_shortselling_consultation.pdf

[114]    ASX, 'Short selling', ASX Public Consultation, 28 March 2008, p. 4, accessed 9 May at: http://www.asx.com.au/about/pdf/short_selling_public_consultation_paper.pdf, pp 4-5. 

[115]    Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 70.

[116]    Mr Ross Clare, ASFA, Committee Hansard, Canberra, 15 April 2008, p. 32.

[117]    Mr Matthew Brine, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 76.

[118]    Mr Ross Clare, ASFA, Committee Hansard, Canberra, 15 April 2008, p. 27.

[119]    Mr Ross Clare, Committee Hansard, Canberra, 15 April 2008, p. 33.

[120]    Mr Martin Codina, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 8.

[121]    Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 26.

[122]    ASX, Companies Update, No. 02/08, 29 February 2008, accessed 9 May 2008 at: http://www.asx.com.au/resources/newsletters/companies_update/archive/CompaniesUpdate_20080229_0208_HTML.htm

[123]    Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 1.

[124]    Taylor, L. 'ASIC to police margin lending', The Australian, 23 April 2008, p. 1; Drummond, M. 'ASIC shifts to closer watch on markets', Australian Financial Review, 9 May 2008, p. 3.

Chapter Four - Improving corporate accountability mechanisms

[1]        Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004.

[2]        Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 3.

[3]        Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 3

[4]        Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 4.

[5]        IFSA, Submission 16, p. 4.

[6]        Mr Martin Codina, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 5.

[7]        Mr Martin Codina, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 11.

[8]        Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 73.

[9]        IFSA, Submission 16, p. 5.

[10]      IFSA, Submission 16, p. 6.

[11]      Mr Matthew Brine, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 72.

[12]      Chartered Secretaries Australia, Submission 8, p. 6.

[13]      AICD, Submission 25, p. 54.

[14]      AICD, Submission 35, p. 4.

[15]      Explanatory Memorandum, Exposure Draft Corporations Amendment Bill (No. 2) 2006, p. 9.

[16]      ACSI, Submission 11, pp 2-3. This would reflect recent changes to the UK Companies Act.

[17]      ACSI, Submission 36, p. 1.

[18]      Riskmetrics, Submission 42, p. 2.

[19]      Technically, shares are purchased with an agreement to re-sell at a later date.

[20]      Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 27; Mr Martin Codina, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 7; Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 73.

[21]      ASA, Submission 38, p. 2.

[22]      Mr Ian Matheson, Australasian Investor Relations Association, Committee Hansard, Sydney, 16 April 2008, p. 73.

[23]      Mr Paul Costello, Committee Hansard, Senate Finance and Public Administration Committee, 28 May 2008, p. 111.

[24]      CSA, Submission 33, p. 3.

[25]      Companies and Securities Advisory Committee, Shareholder participation in the modern publicly listed company: Final Report, June 2000, p. 75.

[26]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 2.

[27]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 4.

[28]      See also Companies and Securities Advisory Committee, Shareholder participation in the modern publicly listed company: Final Report, June 2000, p. 72.

[29]      Mr Peter Abraham, CSA, Committee Hansard, Sydney, 16 April 2008, p. 5.

[30]      Mr Matthew Brine, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 73.

[31]      AICD, Submission 35, p. 3.

[32]      Global Proxy Solicitation, Submission 27, p. 3.

[33]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 61.

[34]      AICD, Submission 35, p. 3.

[35]      Ms Claire Doherty, ASA, Committee Hansard, Sydney, 16 April 2008, p. 28; CSA, Submission 33, p. 4.

[36]      CSA, 'Rethinking the AGM', Discussion Paper, Additional information provided to the committee, 2008, p. 9.  

[37]      CSA, 'Rethinking the AGM', Discussion Paper, Additional information provided to the committee, 2008, p. 10.

[38]      Mr Stephen Mayne, Submission 18, p. 2.

[39]      Mr Stephen Mayne, Submission 18, pp 3-4.

[40]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 61.

[41]      Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 3.

[42]      Mr John O'Shaughnessy, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 6.

[43]      Mr Martin Codina, IFSA, Committee Hansard, Canberra, 15 April 2008, p. 6.

[44]      Mr Ross Clare, ASFA, Committee Hansard, Canberra, 15 April 2008, p. 33.

[45]      Mr Erik Mather, Regnan Governance Research, Committee Hansard, Sydney, 16 April 2008, p 49.

[46]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, pp 60-61.

[47]      Mr Tim Sheehy, CSA, Committee Hansard, Sydney, 16 April 2008, p. 2.

[48]      Business Council of Australia, Submission 29, p. 8.

[49]      Riskmetrics, Submission 13, p. 4.

[50]      Mr Martin Lawrence, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, p. 45.

[51]      Riskmetrics, Submission 13, p. 4.

[52]      ASX Limited, Submission 14, p. 5.

[53]      ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 2nd Edition, August 2007, p. 18.

[54]      Mr Michael O'Sullivan, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 62.

[55]      Mr Dean Paatsch, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, p. 55.

[56]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 61.

[57]      AICD, Submission 25, p. 37.

[58]      ACSI, Submission 36, p. 2.

[59]      Nowak and McCabe, Submission 5, pp 3-4.

[60]      Mr Martin Lawrence, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, p. 55.

[61]      Nowak and McCabe, Submission 5, p. 2.

[62]      AICD, Submission 25, pp 38-39.

[63]      See for example Mr Phil Spathis, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 59.

[64]      Riskmetrics, Submission 13, p. 3.

[65]      See for example Blue, T. 'Telstra directors face savage pay retribution', Australian Financial Review, 10 November 2007, p. 38.

[66]      Mr John Story, AICD, Committee Hansard, Sydney, 16 April 2008, p. 66.

[67]      Mr Michael O'Sullivan, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 66.

[68]      Mr Michael O'Sullivan, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 67.

[69]      Riskmetrics, Submission 13, p. 5.

[70]      Mr Martin Lawrence, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, p. 53.

[71]      ACSI, Submission 11, p. 6; Riskmetrics, Submission 13, p. 5.

[72]      ASA, Submission 38, p. 5.

[73]      Mr Bede Fraser, Treasury, Committee Hansard, Canberra, 15 April 2008, p. 76.

[74]      ACSI, Submission 11, p. 3.

[75]      ASX Listing Rule 10.14, accessed on 26 May 2008 at: http://www.asx.com.au/ListingRules/chapters/Chapter10.pdf

[76]      Mr Dean Paatsch, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, pp 48-50.

[77]      Mr Dean Paatsch, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, p. 49.

[78]      Mr Phil Spathis, ACSI, Committee Hansard, Canberra, 15 April 2008, p. 59.

[79]      ASX Limited, Submission 37, p. 1.

[80]      ASX Limited, Submission 37, p. 1.  

[81]      ASX Limited, Submission 37, p. 1.

[82]      Durkin, P. 'Executive share issues to face vote', Australian Financial Review, 30 April 2008, p. 1.

[83]      Riskmetrics, Submission 13, pp 1-2.

[84]      Mr Martin Lawrence, Riskmetrics, Committee Hansard, Canberra, 15 April 2008, pp 47-48.

[85]      Riskmetrics, Submission 13, p. 2.

[86]      ASX Limited, Submission 37, p. 2.