The Government on Thur 10.4.2014, released the Draft Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014.
It contains a package of repeal and streamlining amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 and is designed to reduce compliance costs for business.
The proposed amendments include measures to increase the flexibility of companies to pay dividends. The proposed amendments would replace the net assets test in s 254T of the Corporations Act with a pure solvency test, and exempt dividend payments from the capital maintenance provisions to the extent that they are “equal reductions” in capital (as opposed to “selective reductions” which may benefit some shareholders more than others, and require additional approvals under current law).
The Government says the proposed amendments are not designed to change existing taxation arrangements.
COMMENTS are due by 16 May 2014.
[LTN 70, 11/4/14]