Included in this update: Government extends temporary COVID-19 measures in CIGA 2020 and more...

COVID-19

CIGA 2020 extensions in force

WELCOME TO OUR LATEST EDITION OF CORPORATE FINANCE NEWS. READ ON FOR UPDATES RELATING TO COVID-19; CORPORATE GOVERNANCE; EQUITY CAPITAL MARKETS; CLIMATE CHANGE AND MORE...

COVID-19: LEGAL & REGULATORY CHANGES

CORPORATE INSOLVENCY AND GOVERNANCE ACT 2020 IN FORCE

Included in this update: Corporate Insolvency and Governance Bill introduced to Parliament; FRC updates guidance on corporate governance and reporting and more...

Corporate Insolvency and Governance Bill introduced to Parliament

Directors are first and foremost responsible to the company as a whole and must exercise their powers and discharge their duties in good faith in the best interests of the company and for a proper purpose. The reference to "acting in the best interests of the company" has generally been interpreted to mean the collective financial interests of the shareholders.

Agencies need to get ready for ipso facto reform by making changes to their contracts, funding agreements and contract administration practices.

Australian Government Agencies face constraints on their ability to terminate agreements where a contractor has entered into voluntary administration or certain other forms of insolvency procedure. The Treasury Laws Amendment (2017 Enterprise Incentives No 2) Act, which amends the Corporations Act 2001 (Cth):

Where a company brings a claim against its directors for losses caused by their wrongdoing, the Supreme Court has confirmed the established position that directors cannot escape the claim by arguing that their actions are attributed to the company itself on the basis that the directors were acting as the agents of the company.