This is a service specifically targeted at the needs of busy non-executive directors. We aim to give you a “heads up” on the things that matter for NEDs in the week ahead - all in two minutes or less.
In this Edition, we consider the further extension of laws permitting electronic execution by companies, the Treasury’s consultation on financial reporting for charities and with respect to the AFCA as well as a new immunity policy for market misconduct offences. We consider the impacts of a Panel decision not to make a declaration of unacceptable circumstances due to the passage of time, and a WA Supreme Court decision on the impact of email correspondence on an existing formal agreement. We also look ahead to the impact of COVID-19 recovery through vaccinations on investment activity.
GOVERNANCE & REGULATION
Government proposes amendments to temporarily permit electronic execution of documents. article
Treasury consults on increasing harmonised financial reporting thresholds for charities. Australian Charities and Not-for-profits Commission Act (Cth) 2012 release
Treasury commences evaluation of the Australian Financial Complaints Authority. AFCA review page consultation pag
LEGAL
ASIC launches immunity policy for market misconduct offences. media release
Panel decision reminds of the importance of timely applications. Webcentral Group Limited 03 [2021] ATP 4
Court clarifies the construction of commercial agreements where the parties’ intentions may have changed. [2021] WASC 42
OVER THE HORIZON
The start of vaccinations and the end of high valuations? Vaccinations have long been pinned as the key to enduring recovery from COVID-19 on a global scale. As vaccinations are now being rapidly rolled out, speculation about the impact of recovery on the market is also growing rapidly, particularly in the UK and USA, where recovery will likely look extremely very different to Australia (for example, as their citizens emerge from prolonged lockdown). As this is occurring, Government stimulus packages throughout these nations will begin to come to an end, excess savings will drop, and demand will likely increase. As demonstrated by last week’s New Zealand Reserve Bank’s mandate change, it is possible that Governments will turn their attention to addressing the unintended consequence of fiscal stimulus - including decreasing housing affordability. How this plays out in the polic space remains to be seen.