Directorships now a risky business

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Original article by James Frost
The Australian Financial Review – Page: 4 : 4-Jan-19

Business executives say there is a growing reluctance to take on board seats due to heightened financial and reputational risk in the wake of corporate scandals and revelations of misconduct in the financial services sector. CSL non-executive director Christine O’Reilly says personal liability has become a key concern for many company directors. She stresses the importance of undertaking due diligence on a company before accepting a directorship. Hugh Morgan notes that a director’s reputation can be tainted by a scandal of which they were not aware.

CORPORATES
CSL LIMITED – ASX CSL, WESTERN MINING CORPORATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESERVE BANK OF AUSTRALIA, TRANSURBAN GROUP LIMITED – ASX TCL, MEDIBANK PRIVATE LIMITED – ASX MPL, STOCKLAND – ASX SGP, ENERGYAUSTRALIA PTY LTD, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, AMP LIMITED – ASX AMP, SORRENTO SAILING CLUB

Rethink company strikes: Maxsted

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Original article by Eli Greenblat
The Australian – Page: 15 & 16 : 4-Jan-19

The remuneration reports of three major banks attracted large protest votes at AGMs in December, putting them at risk of a board spill in 2019. Westpac chairman Lindsay Maxsted says the threshold for a ‘first strike’ is too low at 25 per cent, arguing that most resolutions put to annual meetings require a minimum vote of 50 per cent. Some 88 per cent of National Australia Bank shareholders voted against its remuneration report, while Westpac’s attracted a ‘no’ vote of 64.2 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Regulation slows loans: bank chief

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Original article by Eli Greenblat
The Australian – Page: 1 & 2 : 4-Jan-19

Westpac chairman Lindsay ­Maxsted says the banking major is continuing to lend, but increased regulation of the sector means it is taking longer to approve loans. Maxsted adds that the focus on responsible lending obligations could have an adverse impact on the Australian economy. A number of business leaders have expressed similar concerns, and they have backed a call by federal Treasurer Josh Frydenberg for banks to keep providing access to credit.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, SOUTH32 LIMITED – ASX S32, ANSELL LIMITED – ASX ANN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN AGRICULTURAL COMMODITIES PTY LTD, NUFARM LIMITED – ASX NUF, KPMG AUSTRALIA PTY LTD

Revenge of machines: dollar’s flash crash to 10-year low

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Original article by Michael Roddan
The Australian – Page: 15 & 20 : 4-Jan-19

The Australian dollar fell to $US0.6741 early in local trading on 3 January, its lowest level since 2009. The so-called ‘flash crash’ event was attributed to algorithmic trading. However, the currency recovered much of the lost ground and was fetching $US0.6968 late in the local trading session. Asian currencies, the US dollar and the British pound also fell sharply. Treasurer Josh Frydenberg says many factors influence the direction of the Australian dollar, noting that it is the world’s fifth-most traded currency.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PEPPERSTONE GROUP LIMITED

Miners’ shares soar as $A gold price hits record high

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Original article by Paul Garvey
The Australian – Page: 20 : 4-Jan-19

The price of gold in Australian dollar terms reached a record high of more than $1,859 an ounce on 3 January, eclipsing the previous peak of $1,819.44 an ounce in July 2016. The rally in turn boosted the share prices of local gold producers, with Newcrest Mining advancing 4.3 per cent and Evolution Mining, Northern Star Resources and Saracen Mineral Holdings rising to new highs.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Chinese look to exit unit projects

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Original article by Lisa Allen, Ben Wilmot
The Australian – Page: 15 & 16 : 4-Jan-19

Many Chinese property developers are seeking to divest residential development sites on Australia’s east coast due to factors such as difficulty in securing financing and a decline in demand for apartments. Matrix founder Andrew Antonas says many sites that have scope for 300 to 400 apartments and are located within 15-20km of the Sydney CBD have been put on the market. However, he notes that smaller sites with a capacity of up to 200 apartments and the same distance from the CBD are being retained by developers. Mark Wizel of CBRE expects more Chinese developers to shift their focus to investing in local shopping centres.

CORPORATES
MATRIX PROPERTY GROUP PTY LTD, CBRE PTY LTD, SHIMAO PROPERTY HOLDINGS LIMITED, DALIAN WANDA GROUP COMPANY LIMITED, HNA GROUP, HPG, HAILIANG, YUHU GROUP (AUSTRALIA) PTY LTD, CHARTER HALL GROUP – ASX CHC

KPMG urges refund plan for black economy fines

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 3-Jan-19

KPMG’s submission to a Treasury review has proposed that individuals who have previously engaged in black economy activity could have part of their fine refunded if they have a proven track record of complying with tax laws. The firm suggested that individuals would be more likely to continue to comply with tax laws under such a system, and they could qualify for a refund after three years with a clean slate. The black economy is estimated to be worth up to $50bn a year.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE

Shorten policy a risk to free trade

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Original article by Geoff Connolly
The Australian – Page: 1 & 2 : 3-Jan-19

Labor’s national conference in December supported changes to the party’s policy platform with regard to free-trade agreements, including bans on deals that waive ­labour-market testing requirements or include Investor State Dispute Settlement provisions. However, Trade Minister Simon Birmingham says Labor’s policy would put Australia’s future free-trade deals at risk and undermine the ability of local companies to export their products and services. Meanwhile, data to be released on 3 January will highlight the economic benefits of Australia’s free-trade deals with China and South Korea.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Labor plan to criminalise wage theft may backfire

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Original article by Anna Patty
The Sydney Morning Herald – Page: 5 : 3-Jan-19

University of Melbourne researchers Melissa Kennedy and John Howe have questioned the constitutional validity of Labor’s proposal for state laws aimed at addressing wage exploitation. They say the proposed laws in New South Wales and Victoria could conflict with federal laws such as the Fair Work Act, raising the possibility of a constitutional challenge. They have also raised concerns that criminalising wage theft could undermine the Fair Work Ombudsman’s ability to recover workers’ entitlements.

CORPORATES
UNIVERSITY OF MELBOURNE, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK OMBUDSMAN

Rio moves to defer bonus for ex-CEO

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Original article by Paul Garvey
The Australian – Page: 15 : 3-Jan-19

Rio Tinto is seeking to further postpone the payment of Sam Walsh’s last short and long-term incentive bonuses until an investigation into a scandal associated with the Simandou iron ore project is completed. The former CEO was due to receive half of his remaining incentive bonuses at the end of 2018; Rio Tinto had advised in February 2017 that payment of the final bonuses would be deferred. International agencies are investigating Rio Tinto’s payment of $US10.5 million ($15m) to a French consultant in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FEDERAL POLICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, UNITED STATES. DEPT OF JUSTICE, PERTH MINT, AUSTRALIA COUNCIL FOR THE ARTS, MITSUI AND COMPANY LIMITED