The Government has announced that the amount of termination payments that may be made to company directors and executives without member approval will be reduced.
Currently these payments are regulated by Section 200B of the Corporations Act (as well as other CA provisions).
The changes would mean that:
- the level of payments to retiring credit union and building society directors without getting member approval would reduce;
- the definition of "board or managerial office" would be amended to include "key management personnel" so that the amount paid to retiring executives in that category without getting member approval would reduce.
The changes would apply to retirement plans as well as to payments made on mergers.