7/27/2017

Corporatemanagement

Topic6 inthistopicyoushouldlearn
whoisadirector?
whoisanofficer?
whatarethedifferenttypesofdirectors?
howdoestheboardmakedecisions?
powersoftheboard
directorremuneration payment&disclosure
Reading UCLchapter12

whoisadirector/officer?

Everycompanymusthavedirectors collectivelycalled
boardofdirectorsorboard
sees201Aforminimumnumber&s201Bforminimumage
noprescribededucationalrequirementsorbusiness
experience
Howaredirectorsappointed?
onformation personsnamedwiththeirconsentin
applicationforregistration s117(d)
subsequentappointments
rr companies rr s201G electedbyshareholders
ASICnotification s205B

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whoisadirector/officer?

CorporationsActdefinitionofdirector s9 includes
personappointedtopositionunderconstitutionorreplaceablerules
inaddition,
certainotherpersonsalsoregardedasdirectors
defactodirectors s9definition(b)(i)
shadowdirectors s9definition(b)(ii)
whoisanofficer?UCL[13.0.20&13.0.23] s9definition
includes
directors,companysecretaryAND
seniormanagers(belowboardlevel)whomakesdecisionsthataffect
thewholeorsubstantialpartofthebusiness
keymanagementpersonnelUCL[12.60] includesdirectors&
officers

Typesofdirectors
chair(man)
compulsory
whoappoints rr s248E
businesspractice
distinctionbetweenexecutivedirectors(EDs)&nonexecutive
director(NEDs)
boarddelegatescertainmanagementfunctionstoEDs
typesofEDs
managingdirector(alsocalledCEO chiefexecutiveofficer)
whoappoints rr s201J
appointmentoffinancedirectorisalsocommon
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Typesofdirectors
NEDs
parttimeinvolvement
INEDs independentnonexecutivedirectors(seetopic7)
othertypes
nomineedirectors&alternatedirectors UCL[12.50]&
[12.55]
committeesofdirectors
auditcommittee,remunerationcommittee,nomination
committee

Howdoboardsmakedecisions?

passresolutionsatboardmeetings
frequencyofboardmeetings?
votingatboardmeetings
rr s248G majorityvoting

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Powersoftheboard
usuallywidepowertomanagethecompanysbusiness
extentofmanagementpowergovernedbyconstitutionorrrs
Thebusinessofthecompanyistobemanagedbyorunderthe
directionofthedirectors rr s198A(1)
whatdoesmanagementpowerinclude?
boardmaydelegatemanagementpowers s198D
otherpowersoftheboard UCLTable12.1p320
issueshares
callshareholdersmeetings

Whataretheboardsfunctions?

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Shareholdercontrolovertheboard
cannotshareholderstellthedirectorshowtomanage
shareholdersmeetingcalledtoinstructdirectorstosellcompany
property
AutomaticSelfCleansingvCunninghameUCL[12.85]
shareholdersmeetingcalledtostopdirectorssellingthecompanys
business
StrongvJBrough &Son UCL[12.75]
shareholdersmeetingmustbeheldforproperpurpose s249Q
(topic8)
whatpowersdoshareholdershave?
electdirectors ordinaryresolution
removedirectors UCL[12.275] [12.285]
differentrulesforpublic&proprietarycompanies

directorsremuneration
UCL[12.290 12.335]
rulessetoutinconstitution(ifany)orrrs
listedcompanysmustalsocomplywithASXListingRules
remunerationdisclosures
governedbyCorpsAct&AASBstandards

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remunerationdisclosure
unlistedcompanies
AASB124RelatedPartyDisclosures Aus 17
financialstatementsmustdiscloseTOTAL key
managementpersonnelcompensationforeachof5
categories
shorttermemployeebenefits
postemploymentbenefits
longtermbenefits
terminationpayments
sharebasedpayments

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remunerationdisclosure
listedcompanies
specifics300Adisclosurestobesetoutinseparate
section(remunerationreport)ofcompanysannual
report
seeUCL[12.310]fordetails
forEACH memberofkeymanagementpersonnel
prescribedcompensationdetailsbrokendowninto5
categories

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