Regulation 2M.3.03

Regulation 2M.3.03 amends requirements for remuneration reports of listed companies

On 16 April 2016, Regulation 2M.3.03 of the Corporations Regulations 2001 was updated by  Corporations Amendment (Remuneration Disclosures) Regulation 2016 to fix anomalies that arose when the key management personnel (KMP) disclosures for disclosing entity companies were moved from AASB 124 Related Party Disclosures, paragraph Aus 29.7 and to Aus 29.7.3 – 29.9.3 into the regulations by AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements.

What were the drafting anomalies?

The main problems with the original Regulation 2M.3.03 were that disclosure was required for:

  • All shareholdings of a KMP, rather than just shareholdings in the disclosing entity or any of its subsidiaries (item 18), and
  • All non-arm’s length transactions involving equity instruments (other than share-based payment compensation), by KMPs during the period, rather than just transactions with the disclosing entity and any of its subsidiaries (item 19).

Withdrawal of Class Order 14/632 Key management personnel equity instrument disclosures

Class Order 14/632 has been withdrawn for financial years ending on or after 17 April 2016 because this is the commencement date of the updated Regulation. This means that CO 14/632 would be applied to a 31 March 2016 year end but not to a 30 April 2016 year end.

What other changes were made to Regulation 2M.3.03?

The updated regulation also amends Regulation 2M.3.03(3A) to clarify that disclosures about loans to KMPs includes transactions that are in substance options, including non-recourse loans.