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ARTICLE · 04 JULY 2011

Two Strikes rule starts today

Clayton Utz
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The Two Strikes rule to force company board spill motions comes into force on 1 July 2011.

AustraliaCorporate/Commercial Law
Karen Evans-Cullen (Formerly With Clayton Utz)
Karen Evans-Cullen (Formerly With Clayton Utz)
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Contributions to this article by Jasmine Sprange

Key Points:

Under the Two Strikes rule, a listed company will be required to hold a spill vote if its remuneration report receives a 25% No vote two years in a row.

The Two Strikes rule to force company board spill motions comes into force today.

Under the rule, a listed company will be required to hold a spill vote if its remuneration report receives a 25% No vote two years in a row.

This rule will apply to remuneration votes after 1 July this year (for more commencement details, see below).

The rule is part of the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011. The Act also:

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