Parliament passes legislation to allow AGM chair to vote undirected proxies on the remuneration report resolution

On Monday 18 June 2012, Federal Parliament passed amendments to the Corporations Act to clarify that the chair of an AGM will be able to exercise undirected proxies for the non-binding remuneration report vote. This will be allowed where a shareholder expressly authorises the chair to exercise the proxy even if the resolution is directly or indirectly connected with the remuneration of a member of key management personnel.

This should be welcome relief to the 115 companies (at last count) that received a “1st strike” on their remuneration reports, and those otherwise contemplating a strike this AGM season. Of arguably more significance is the fact that the amendment will restore the right of shareholders to allow their proxies to exercise votes on their behalf.

Further details of the amendments are set out in our June newsletter article HERE.

A copy of the bill as passed is available HERE.

The amendments take effect the day after the bill received the Royal Assent, which occurred on 27 June 2012.

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