21 March 2011

Mr David Bradbury MP
Parliamentary Secretary to the Treasurer
Parliament House
CANBERRA ACT 2600

Dear Mr Bradbury

Corporations Amendment Bill 2011

We advised your office earlier today that the Group of 100 (G100) wished to submit an addendum to our letter dated 18 March 2011. Late on Friday, a member informed us of another potential issue, as follows:

No Vacancy Rule: There is the potential that this rule may encourage individuals or special interest groups to nominate candidates for election. Companies may, in turn, appoint directors up to the limits specified in their Constitutions in order to mitigate this risk. This could cause Board instability, either through inappropriate board composition or through hurried appointment of Board-appointed directors. When considered in the context of a potential spill vote, this could lead to the possibility of under qualified directors successfully running for election just because there are vacant roles.

The G100 strongly believes that Boards should continue to have the ability to manage their composition from a skills and experience perspective and appoint the right people at the right times.

We apologize for any inconvenience.

Yours sincerely
Group of 100 Inc

Peter Lewis
National President

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