Penny Wong (SA, Australian Labor Party, Shadow Minister for Corporate Governance and Responsibility) Share this | Hansard source

Cross-party. I did indicate that at the outset, Senator Murray. Labor also supports the repeal of paragraph 657D(2)(a) and the replacement of words consistent with the amended section 657A to make orders to protect the rights and interests of persons affected in the past, present and future. The Law Council’s amendment that is circulating the chamber on sheet 5233 is an amendment in my name which seeks to give effect to this.

Concerns were also raised through the inquiry process with the new proposed paragraph 657D(1)(a) which allows the panel to receive submissions only from parties that will be directly affected by the proposed order. Labor are cognisant of the concerns raised but nevertheless we are intent on supporting these amendments to the relevant section on the basis that they will increase the efficiency of panel proceedings.

Labor acknowledge that there may be a range of ways which enable shareholders to increase their interest in target companies that may not trigger a review by the panel. We are of the view that there should be a review of chapter 6C of the Corporations Act 2001 to consider specifically the issue of disclosure of equity to derivatives. As I outlined earlier, this was a cross-party recommendation from the parliamentary joint committee. The opposition consider that the Takeovers Panel has an important role to ensure that the control of voting shares takes place in an efficient, competitive and informed market, as is set out in section 602 of the Corporations Act. Accordingly, we support this bill as part of a corporate regime which is intended to increase the efficiency of the takeover process without restricting the necessary rights of parties to access courts to review the panel’s decisions in accordance with the principles of administrative law.