Managing conflicts

Related party transactions

Public companies must obtain member approval to provide financial benefits to related parties (such as a director, their spouse and certain other relatives), subject to certain exceptions.

Directors of public companies with material personal interests in certain matters are also excluded from attending director meetings about, or voting on these matters.

These protections assist in managing the risk that the director's own interests or those of a related party may influence the decision-making of directors to the detriment of the interests of members of the entity as a whole.

Disclosure of directors' interests 

Directors are subject to heightened transparency requirements regarding their dealings in the company's securities. Directors of listed companies must disclose any interests they have in the shares of the company or its related body corporate.

A director with a material personal interest in any matter that relates to the affairs of the company must generally notify the other directors of that interest.

What's new

ASIC to further extend financial reporting deadlines for listed and unlisted entities and amends ‘no action’ position for AGMs

13 May 2020

ASIC will extend the deadline for both listed and unlisted entities to lodge financial reports under Chapters 2M and 7 of the Corporations Act by one month for certain balance dates up to and including 7 July 2020 balance dates.

Reminders on director trading during COVID-19

7 May 2020

Considerations for directors (including directors of the responsible entity of a listed managed investment scheme) regarding the acquisition and disposal of securities and other financial products issued by their listed entity.

ASIC guidelines for investor meetings using virtual technology

6 May 2020

On 6 May 2020, temporary modifications to the Corporations Act under the Corporations (Coronavirus Economic Response) Determination (No. 1) 2020 (Determination) took effect. Read more.

Directors duties in the context of COVID-19

20 April 2020

The current evolving circumstances surrounding COVID-19 present many challenges to companies, boards, management and their stakeholders. Read this article by Commissioner John Price.

Details of changes to ASIC regulatory work and priorities in light of COVID-19

14 April 2020

ASIC’s Close and Continuous Monitoring program has been suspended. However, ASIC will continue to monitor firms remotely, including through close working and information sharing arrangements with APRA.

Last updated: 19/12/2019 08:30