CORPORATE GOVERNANCE – AUSTRALIA

Private equity gives Guvera cold shoulder

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 10-Jun-16

The proposed sharemarket float of Guvera is backed by AMMA Private Equity, which was established by Darren Herft, who also co-founded the streaming music provider. He is CEO of Guvera and executive chairman of AMMA. Australian Private Equity & Venture Capital Association CEO Yasser El Ansar is concerned that the IPO could damage the reputation of the private equity industry. El Ansar says members of AVCAL – which do not include AMMA – must comply with a strict code of conduct, which includes their relationship with the businesses in which they invest.

CORPORATES
GUVERA LIMITED – ASX GUV, AMMA PRIVATE EQUITY PTY LTD, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, BENCHMARC GROUP, PACIFIC EQUITY PARTNERS PTY LTD, CHAMP PRIVATE EQUITY PTY LTD, ARCHER CAPITAL PTY LTD, KKR AUSTRALIA PTY LTD

7-Eleven dumps independent back-pay panel

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Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 3 : 12-May-16

Allan Fels is concerned that employees who were underpaid by 7-Eleven may not be fully compensated after the convenience store chain moved to disband the independent panel that was established to assess compensation claims. Fels and fellow panel member David Cousins have been advised that 7-Eleven will now handle compensation claims in-house. Fels says the move is aimed at minimising the amount of compensation 7-Eleven must pay.

CORPORATES
7-ELEVEN STORES PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Besieged bank vows to improve process

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Original article by Michael Bennet
The Australian – Page: 7 : 11-Mar-16

The Commonwealth Bank has promised to thoroughly investigate recent allegations of unethical behaviour at its insurance business. Reports in the media outline allegations of doctors being under pressure to change their diagnoses of life insurance policyholders to match CommInsure’s commercial goals. Superannuation fund HESTA is reviewing its relationship with CommInsure.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

The ayes have it: companies wave goodbye to show-of-hands voting

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Original article by Andrew White
The Australian – Page: 21 : 10-Feb-16

The Australian Council of Superannuation Investors believes that companies should use a poll rather than the show-of-hands system to vote on resolutions at AGMs. It is estimated that about 20 per cent of Australia’s top 200 listed companies still use the traditional show-of-hands, although this methods is now used by less than 10 per cent of top-100 companies. Lobbying by TIAA-CREF has convinced many large companies that used a show-of-hands at their 2014 AGM to abandon the practice.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, TEACHERS INSURANCE AND ANNUITY ASSOCIATION – COLLEGE RETIREMENT EQUITIES FUND, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIA. CORPORATIONS AND MARKETS ADVISORY COMMITTEE

Target super literacy, says Deloitte

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 4-Dec-15

Russell Mason of Deloitte notes that some trustees of superannuation funds voluntarily undertake a course for financial product advisers, but he argues that it should be compulsory for all of them. The issue of governance standards in the sector is again under scrutiny after cross-bench senators rejected the Australian Government’s proposal for one-third of all super funds’ directors be independent. Former Reserve Bank governor Bernie Fraser will review governance standards in the industry.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL

Super industry told to sort out ‘fit and proper’

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 1-Dec-15

The Australian Government is right to insist on higher governance standards among superannuation funds. JPMorgan global pensions executive Benjie Fraser says it is vital to ensure that only "fit and proper" persons hold managerial and board positions within a super fund. The Government wants one third of super funds’ boards to be independent directors.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, TELSTRA SUPERANNUATION SCHEME, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Westpac under fire over pay

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Original article by Adele Ferguson
The Australian Financial Review – Page: 1 : 30-Nov-15

Westpac has refuted claims by Ownership Matters that its executive bonuses for 2013-14 and 2014-15 were inflated by a decision to exclude a software write-off from its cash earnings. Ownership Matters argues that Westpac’s ex-CEO Gail Kelly and other senior executives would not have received bonuses if the $A354m software write-down had been included in the bank’s cash earnings. The firm has advised Westpac shareholders to vote against the bank’s remuneration report at its 2015 annual meeting.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, OWNERSHIP MATTERS PTY LTD, DEUTSCHE BANK AG

APRA puts union super on notice

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Original article by Sally Rose, Joanna Mather, Sally Patten
The Australian Financial Review – Page: 1-Dec : 22-Oct-15

Australian superannuation funds will have to ensure that 33 per cent of their directors are independent from mid-2017 under proposed legislation. The Australian Prudential Regulation Authority’s Helen Rowell says the new laws will also require a majority of directors to be independent from mid-2019, unless a super fund can present a strong argument to justify not doing so. Rowell has rejected claims by industry super funds that returns would be lower under the proposed regime.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, INDUSTRY SUPER AUSTRALIA PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, UNISUPER LIMITED, SUNSUPER PTY LTD, AUSTRALIANSUPER PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. FAIR WORK COMMISSION, FINANCIAL SERVICES COUNCIL

Retiring CIO: new board rules will be good for super funds

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 21-Sep-15

Sunsuper will appoint Michael Traill and Andrew Fraser as independent directors. However, CEO Scott Hartley opposes the Australian Government’s proposal to require one-third of super fund’s boards – including the chairman – to be independent. In contrast, outgoing chief investment officer David Hartley favours the push for greater independence of directors. He notes that industry super funds with equal representation by employers and employees have tended deliver good returns.

CORPORATES
SUNSUPER PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SOCIAL VENTURES AUSTRALIA LIMITED, QUEENSLAND. TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN CONSUMERS’ ASSOCIATION, QSUPER LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, KPMG AUSTRALIA PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, TELSTRA SUPERANNUATION SCHEME

Gyngell cleared of insider trading claims

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Original article by Darren Davidson
The Australian – Page: 25 : 17-Aug-15

The Australian Securities & Investments Commission (ASIC) has decided not to take further action against Nine Network CEO David Gyngell. ASIC officers examined a large number of email and text message records but found no evidence supporting insider trading allegations. The investigation was triggered by the sale of 700,000 Nine shares by Gyngell on 20 May 2015

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, CRICKET AUSTRALIA