What Are The Laws Of Directors Remuneration In Australia Are They Research Paper

What Are The Laws Of Directors Remuneration In Australia Are They Adequate, Effective And Efficient To Protect The Interests Of The Shareholders - Research Paper Example It is simply regarded as the salary of the directors that is paid by a particular company to the director. A director is viewed to be an administrative officer of a business entity and acts as a principal agent of a concern. The remuneration of the directors is not only provided in the form of salary but also in the form of bonuses, incentives and stock payments and other benefits. Different laws are applicable concerning director’s remuneration in diverse nations.It has been viewed that the remuneration reforms which formed by the Federal government of Australia attracted the response of various organizations as well as their respective directors and also made them to respond to make any sort of change in stakeholder engagement. However, the shareholders and the constitution frames by a company play a major part in determining the laws of director’s remuneration in Australia.1 In this discussion, the different laws concerning director’s remuneration in Australia will be taken into concern. Moreover, the laws are adequate, effective and efficient or not in order to protect the interests of the shareholders will also be portrayed in the discussion. Legal Issues Relevant To the Laws of Directors’ Remuneration in Australia The legal issues relevant to the laws of director’s remuneration in Australia can be processed under the recognition of Chartered Secretaries Australia (CSA). It has been apparently observed that the issue relating to directors remuneration received much attention in the year 2011. In this similar regard, this regulatory reform issue ranked third in the year 2012.2 Section 9 of the Corporations Act defines remuneration as any benefit that is provided to an employee or an officer belonging to a particular corporation. Moreover, the Act also described remuneration as compensation that comprises all employee benefits such as salaries, bonuses and wages among others. According to Chartered Secretaries Australia (20 09), the Australian Government newly released the Corporations Amendment Bill 2009 for public consultation. Under the guidelines of this law, it has been proposed that the termination benefits especially for the directors as well as the senior management officials will need approval from the shareholders. This practice would ultimately ensure higher remuneration scrutiny that includes greater responsibility and termination payments.1 The different legal issues that can be correlated with the laws of director’s remuneration in Australia are the ‘two-strikes’ rule, proxy voting, no vacancy rule, remuneration consultants and voting by key management personnel.3 The detailed analysis of the aforementioned issues has been described hereunder. The ‘Two-Strikes’ Rule According to the Corporations Act 2001, every listed company is required to make a remuneration report that should be submitted to a non- binding vote of shareholders at the Annual General Meet ing (AGM) of a company. The Act proposes to empower this requirement by forming ‘two strikes’ and re-election procedure. In this connection, the first strike would take place at the time when remuneration report of a company receives a ‘no’ vote of near about 25% or more. If certain situation arises, then it is the responsibility of the management officials of a company to convey the matter related to the board in order to take necessary steps or action. If a company does not convey any message relating to the matter, then the board would be liable to take necessary actions. The second strike would happen when the remuneration repo

SMART criteria Essay Example | Topics and Well Written Essays - 750 words

SMART criteria - Essay Example The motion detectors shall be installed to sense whenever there seems to be activity in the room. This will avoid instances of switching on light in an empty room. Whenever there is motion in the room the switching system shall be in standby mode. Light detectors shall then be engaged when the level of light reduces which shall turn the lights on. Motion detectors shall be the primary switching control to put the switching system on standby mode. The motion detector shall be installed by using laser technology to enable sensory of even the smallest movements within a room (Fraden, 267). The light detectors will be the secondary switching level turning on the lights when low levels of light are detected in the occupied room. Measurability The progress of the project shall be based on the set timetable for the plan. Each step in the installation of the switching system shall be analyzed before going forward to the next step. The first step has been laid down as wiring the house. This w ill be done to ensure the circuit is well placed and in the desirable manner. This step is expected to consume the most time as it involves a lot of physical work. The goals of the plan shall be measured against the time laid down for the expected progress. The installation of the circuit should adhere to the installation standards (Linsley, 144). These include the wiring safety codes and the color codes used internationally. Other national standards shall also be applied in measuring the suitability of the installation of the systems. Comparing the setting of the switching system with the set standards shall provide a platform for measuring the conformity to standards. This will ensure that the end product not only works perfectly, but is also safe and conforms to set standards. Attainability The need to install the switching system arises from the desire to switch off unnecessary light. The aim of installing this new system will be to ensuring regulation in the amount of wasted en ergy. Providing a proper control to the usage of light shall immensely reduce the costs incurred from energy related bills. Evidence exists to show that this method can be able to save up to 25% of the energy consumption, reducing energy costs by a similar margin (Klaus D. John, 97). This regulation will occur by providing a system that allows for usage of light only when necessary. The number of lights left on overnight shall also be minimized by using this system. If an individual leaves a room without switching the lights off, the timer shall automatically switch the lights off. This occurs after motion detectors fail to detect any activity in the room. Excess lighting in the rooms shall also be reduced by the light sensors as they control the amount of light allowed into a room at any time. Realistic The proposed system provides an avenue for saving a lot of energy costs. This shall translate into reduced energy bills for the house. The installation of this system is viable as a way of relieving the owners of the house from the high costs of electricity and lighting. Achievement of this shall be through efficient management of the lighting by using switching system that is automated (Reed, 245). The system continues to be employed in many establishments like hotels, and desirable outcomes have been realized. If the same system is utilized within the scope of this house, similar results can also be realized. This lighting system can immensely reduce the time taken by people moving round to switch lights in places