"Two Strikes" policy for directors over executive remuneration

Australian shareholders will have the right to a "two strikes and you're out" test to remove directors if a company's remuneration report has received a 'no' vote of 25 per cent or more at two consecutive annual general meetings under legislation introduced this week. If passed, the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 will take effect from 1 July.

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Read more: Legislationexecutive remunerationcorporate governanceDavid Bradburyshareholder rights