LAW FIRM BACKS SCRAPPING OF 100-MEMBER RULE

LAW FIRM BACKS SCRAPPING OF 100-MEMBER RULE

THE FEDERAL Government’s proposal to repeal the 100-member rule will have a positive effect on shareholders, according to law firm Corrs Chambers Westgarth.

Changes to Section 249D of the Corporations Act 2001, will remove the rule allowing a small group of investors to call special general meetings for public companies.

“Removal of the 100-member rule will have a positive impact on shareholder participation and will go a long way to managing costs for Australian listed companies.

Lumsden says many industry groups have lobbied for its abolition since 1982, as it gives an “extraordinary amount of power” to a minority.

“Shareholder activism is a component of corporate governance. It does not mean that 100 shareholders, who may hold just a tiny fraction of the capital of the company, should be able to put the company to the cost of holding a meeting of their choosing,” he says.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

GreenFort, Gaw Capital join forces on $800m joint venture

GreenFort, Gaw Capital join forces on $800m joint venture

Brisbane-based alternative real estate fund manager GreenFort Capit...

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Virtual IT Group (VITG), a Wollongong-based managed service provide...

Booktopia extends share trading suspension as critical funding announcement looms

Booktopia extends share trading suspension as critical funding announcement looms

Just as so many Booktopia (ASX: BKG) customers had to wait longer t...

Seafarms sells two farms to Barramundi group MainStream for $13.5m to fund prawn mega-project

Seafarms sells two farms to Barramundi group MainStream for $13.5m to fund prawn mega-project

Darwin-headquartered prawn producer Seafarms (ASX: SFG) is selling ...