Author: Editor

Governance Wrap 15 November 2009

Second Round of Fair Work Act Changes Commence In Six Weeks facebook Twitter LinkedIn RSS With 6 weeks to go to the start of the Modern Awards, Minister for Employment and Workplace Relations, Julia Gillard ordered a rewrite of the airline staff award, following union claims that under the new award ground staff face pay cuts of up to $300 a week and pregnant cabin crew loose their right to shift to other duties. Interestingly this was about the only media coverage during the week relating to the Modern Awards and National Employment Standards which commence on 1 January 2010.  Given the initial results of the CompliSpace Survey indicate that approximately 47% of executive managers have little or no understanding of these changes (which will have a major impact on their businesses) lets hope that either the government or the media start to highlight the key issues prior to the Christmas break. In the background the Fair Work Ombudsman continues its audit/inspection and education programs with announcements this week that 1 in 4 businesses examined during an audit in Hobart were not compliant and a number of companies/directors in Adelaide and Melbourne have been fined in excess of $50,000 for deliberately underpaying workers. Disgruntled Shareholders Continue to Apply the Pressure The AGM season continued with a steady flow of protest votes from disgruntled shareholders.   A quarter of top 200...

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Governance Wrap 8 November 2009

AUSTRAC Turns Up The Heat On Small Business facebook Twitter LinkedIn RSS Austrac kicked off the week with a press release noting that its remedial actions were up 104%. The regulator issued 1,140 requirements for remedial action and 491 recommendations to address non-compliance last financial year.   New CEO John Schmidt followed up with a warning to all reporting entities that Austrac is about to get tough on those that failure to comply with the AML/CTF Act.   To enforce his point, on Thursday, Austrac issued a press release advising that it had issued its first remedial direction for non-compliance against a small remittance service provider.  Mr Schmidt warned “other small businesses should also note that AUSTRAC’s enforcement activity will extend beyond large, well-known financial institutions”. ASIC Pursues Former Firepower Boss Tim Johnston Remember the Austrade backed “fuel pill” that was going to change the world.   Firepower must be one of the most audacious frauds in Australia’s corporate history with celebrity investors fleeced of over $100,000,000 as ASIC sat back and did absolutely nothing, despite whistleblowers screaming from the hill tops.  Remarkably its mastermind Tim Johnston simply upped and left Australia and has been living in Europe for the past few years apparently untouchable by Australian authorities. In a move that caused Firepower liquidator Bryan Hughes to remark ”maybe .. he is cocky.. maybe his is incredibly stupid. I really don’t...

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Governance Wrap 1 November 2009

IPO Governance Action facebook Twitter LinkedIn RSS Kathmandu announced details of a $440 million float only to be given a scare when reclusive founder Jan Cameron, who had sold out in 2006 for $280 million, announced her apparently well advanced plans to set up a new venture in direct competition.   Whilst Kathmandu’s CEO pointed out that Cameron was subject to a restraint, here’s betting that they don’t do anything about it.  The restraint only runs until May 2011 and the publicity from any legal action would only play right into the hands of Cameron’s new venture.  Smart tactical move some might say. On a more sedate note this week ASX released its Supervision Report with Chief Supervision Officer, Eric Mayne, warning that the ASX will intensify its surveillance of IPO’s and backdoor listings as the market bounces back.  Hidden in the body of the document was the fact that only 123 of 278 matters referred by ASX to ASIC in the last 4 years have been resolved.   This might be about to change with the additional money that has been allocated to ASIC to support its enforcement activities. ASIC Puts IMF Executives In the Firing Line Nice segway….. last week it was the Astarra Strategic Fund and Centro.  This week ASIC have been busy pressing claims against the former executives of IMF (renamed Octaviar).  Squarely in the headlights are...

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Governance Wrap 25 October 2009

facebook Twitter LinkedIn RSS Well what a week it has been, angry shareholders, ASIC lawyers working overtime as the litigation funders and class action lawyers continue to feast on corporate carcasses. Shareholders voice their anger at excessive executive remuneration AGM season is well underway and the shareholders of EDI Downer and Qantas let their respective boards know in no uncertain terms what they thought about their executive remuneration strategies.    In the US, the Obama administration has taken steps to slash executive salaries by up to 90%, in companies such as Citigroup, AIG and GM which were the beneficiaries of government bail-outs. ASIC shakes off its corporate plod reputation ASIC lawyers have been very busy.    First it issued proceedings in the NSW Supreme Court against the managers of the boutique Astarra Strategic Fund as well as obtaining an urgent interim order forcing the responsible entity of the fund to remove its PDS from its website.    Not much information flowing at this stage with ASIC being barred by the Judge from commenting on the case. Then, in a move several commentators described as “terrifying for directors”, ASIC launched legal action against the entire 2007 board of Centro claiming that their accounts failed to classify more than $2 billion of debt.  What’s $2 billion amongst friends? With these types of strikes ASIC might even start to shake is reputation as “the...

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Developing HR Strategies to Manage Gen Y Workers

facebook Twitter LinkedIn RSS Every time you hire, induct, train, or performance manage an employee you’re making a substantial investment in your business and building your asset base. Gen Y’s look at their baby boomer parents and  wonder in amazement how they could give loyalty to corporations.  After all corporations can’t give loyalty back can they?  So Gen Y’s take a different approach. They operate as self contained units building career paths independently of the businesses that they work for.   They build social and business networks creating bridges that will provide them with opportunities into the future.   They seek new knowledge and skills and will happily work for businesses that provide them (before moving on). So it shouldn’t come as a surprise that it is forecasted the Gen Y workers will, on average, hold 19 jobs during their lifetime. That’s one every 2-3 years.   Think of the implications for traditional HR models.  Retention strategies wont work, so employers are going to have to start thinking outside the square. So what can employers do to mitigate risks associated with Gen Y workers?  What opportunities exist for those employers who proactively manage this demographic trend?    Well actually its not rocket science. Start by focusing on recruitment and selection strategies and kill two birds with one stone.  If Gen Y’s are leaving one employer they will be looking to join...

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Opening Post

facebook Twitter LinkedIn RSS Welcome to the CompliSpace BLOG. Subscribe for regular commentary on compliance related topics by our expert staff. Let us know what you want to hear and check out our corporate website http://www.complispace.com.au You can also find us on Twitter @CompliSpace and...

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