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 recent release of draft legisaltion enacting significant FIRB reforms, amendments to the JobKeeper Scheme, a recent Federal Court decision affecting shareholder class action litigation, and key changes to ASX relief for COVID-19 related capital raising activity.
YOUR KEY BOARDROOM BRIEF
Major reforms to foreign investment review framework. exposure drafts Foreign Investment Reform (Protecting Australia’s National Security) Regulations 2020 Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 Foreign Acquisitions and Takeovers Act 1975
Amendments to JobKeeper Payment Rules: additional fall in turnover test and payment reductions. Coronavirus Economic Response Package (Payments and Benefits) Amending Rules (No 8) 2020 (Cth) Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (Cth)
Additional eligibility condition introduced for JobKeeper fortnights beginning on or after 28 September 2020. For each quarter in the extension period, an additional fall in turnover test applies that is based on an entity's actual decline in turnover assessed against the comparable quarter in 2019.
In each quarter of the extension period (to 28 March 2021), the rate of the JobKeeper payment will be split. The rate will be determined by reference to an eligible employee's hours of work, paid leave and paid absences on public holidays over a four-week reference period. The payment will also be reduced in the first quarter of the extension period and reduced again in the second quarter of the extension period.
Shareholder class action litigation hits a roadblock. Ingram v Arden Leisure Ltd [2020] FCA 1302 Corporations Act
In this case, the Applicants' central allegation in the class action relates to the Ardent companies’ breach of obligations or failure to perform duties that caused the Applicants damage when they made the investment decision to acquire stapled securities in ALG.
The alleged wrongs were done to the Applicants in their capacity as potential investors in the companies and not in their capacity as shareholders.
Section 247A does not authorise inspection to assist shareholders to advance claims that arise from wrongs allegedly done to them in a capacity other than that of a shareholder.
ASX announces changes to temporary emergency capital raising relief. temporary extra placement capacity class waiver and non-renounceable offers class waiver
THE WEEK AHEAD
ASX Market Announcements closing one hour later during daylight savings. Daylight savings commences in NSW, the ACT, VIC, TAS and SA at 2am EST on Sunday 2 October 2020, and will end at 3am Sunday 4 April 2021. ASX Market Announcementswill stay open until 8:30pm EST starting on Monday 5 October 2020 and will revert to the usual 7:30pm EST closing time when daylight savings end.