Role of Company Secretary in Austraila: Why you need one for your business?

When we think of a company secretary, we picture a person answering calls and managing appointments. However, responsibilities of a company secretary include lot more than this. Considered an officer of an organisation, he shares several legal duties with company directors. It is his responsibility to file annual returns and other documents, usually on an annual basis. Besides, he is responsible for scheduling board meetings as well as other internal administrative matters.

Considering the heavily administrative nature of the role played by a company secretary, it is needless to say that the professional you choose should be motivated, organised and should be well versed with the internal working of your organization, and its legal duties.

Apart from filling annual returns, a company secretary takes charge of director’s reports. This includes a document containing the state of the company, along with the names of the secretary and director approving the accounts. This document is filed annually and all the financial statements, along with the details of the company’s liabilities and assets are included. Besides, the company secretary is also responsible for filing auditor’s reports, but that would be needed if your business’ annual turnover is more than a specific amount that depends on the location of your business.

The other duties of company secretary include:

Maintaining the company’s registered office

This is necessarily not the address from which the company actually operates. It is company secretary’s responsibility to ensure that you receive all correspondence sent to that address. He needs to make sure that the registered name of the company clearly appears outside the registered office and other places of business. Any change in company’s registered address is informed to ASIC by the company secretary.

Taking care of important legal documents

Legal documents include constitution, share certificate and share transfers, any certificates related to the change of name, the company’s seal and director’s service contracts. All these documents have to be carefully taken care of by the secretary.

Maintaining the company’s statutory needs

It includes minutes of general and board meetings, a register of shareholders, a register of directors, any charges applicable to the company’s assets as well as a register of debenture holders. It is the duty of Company Secretary to look after all statutory needs and ensure everything is in place.

Informing important changes

ASIC needs to be informed when certain changes are made in the company. This includes allotment of new shares, change to the make-up of the board of directors and more. When such changes are made in the company, it is the duty of company secretary to inform the ASIC about the same.

What other ways can a company secretary serve your business?

Be it a full time or part time Company Secretary, he plays an important role in effective administration of business. Particularly, his duties include scheduling board meetings and ensuring that precise minutes of meeting are taken as well as signed. Besides, he is also responsible for arranging Annual General Meetings (AGM). Although such meetings are no longer needed for privately listed companies, they are required if a company has traded shares.

When appointed in smaller companies, the secretary takes on some additional responsibility for things such as PAYE and payroll, GST registration, pensions, taking care of company’s offices and legal matters. Besides, he has to take responsibility for signing off documents, such as those related to accounts and leases, on board’s behalf.

A company secretary is an important part of a company, whether large or small. The duties performed by him can help a business grow. Companies that cannot afford services of a full time secretary can opt for part time company secretary services. Professionals offering such services perform duties of a full time secretary, but charge relatively less for the same.

For any company appointing a secretary, it is important to provide him some training and advice to help him understand the duties involved in the role.

Feb 26 2016

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Understanding the Duties of a Company Secretary in Sydney and across Australia.

Holding a senior position in a public or private sector organization, a Company Secretary is responsible for effective administration of a firm, particularly in terms of ensuring adherence to statutory and regulatory needs and to ensure implementation of decisions taken by the Board of Directors.

It is the duty of a Company secretary to ensure that the company adheres to relevant regulation and legislation, informing the board members about their legal responsibilities. Serving as names representatives on legal documents for a company, they make sure that the organization, as well as the directors, function within the law. Their duty requires them to register and interact with stakeholders to ensure payment of dividends and to maintain records of an organization, such as lists of shareholders and directors, along with annual accounts.

Appointing a company secretary is a law in many countries that the private companies have to comply with and the chosen professional usually becomes a senior board member. According to Companies Law, only a listed firm is required to have a full time secretary while a single member company that is not a public company needs to appoint a secretary.

Functions of a Company Secretary

Duties generally performed by a Company Secretary include:

Secretarial Functions

The wide set of responsibilities undertaken include:

  • To make sure that the rules and bye-laws of a company are strictly adhered to
  • To ensure that company’s affairs are managed as per its objects described in the articles of association and provisions of companies law
  • To prepare the agenda after discussion with the Chairman and on the basis of other documents for all meetings of the Board of Directors
  • To attend board meetings to ensure all legal needs are met, and to provide necessary information
  • To arrange annual and extraordinary meetings for an organization, with the consultation of chairman, and attend the same to ensure adherence to legal requirements and to maintain accurate record thereof.
  • To arrange and hold meetings of the board and to prepare accurate records of proceedings
  • To deal with the matters related to allotment of shares and issue of share certificates, including maintenance of statutory share register and conducting relevant activities related to share transfer.
  • To prepare, approve and seal lease agreements, legal forms, along with other official documents on company’s behalf, after they are authorized by Board of Directors or the executive responsible.
  • To advise on legal matters, in conjunction with company solicitors, to the chief executive as and when required.
  • To defend the rights of an organization in Courts of Law.

    • In addition to secretarial functions, a Company Secretary performs legal duties, including:

  • Filling of returns and documents as needed by the Companies Law
  • To ensure legal requirements for allotment, issue and transfer of share certificates, mortgages have been adhered to
  • To arrange meetings of directors, as needed
  • To inform each director of the company about the agenda of board meetings
  • To record minutes of proceedings of meetings
  • To ensure accurate implementation of policies formulated by the directors
  • To deal with and maintain correlation between the company and shareholders
  • To inform the shareholders about the agenda of meetings
  • To handle payment of dividend within stipulated time as stated by the Companies Law

    • Indubitably, company secretary services are vital for any company, regardless of its size. Even though a Company Secretary enjoys certain rights and power, depending on the terms of his contract with the company, there are some restrictions to his power, such as:

    Distribution and transfer of shares

    A Company Secretary does not hold the right to distribute or transfer any share if he is not authorized to do so by the Board of Directors.

    Duty as company agent

    He cannot be a part of any meeting as a company agent without the approval of Board of Directors. He would need their consent to sign any contract for the company.

    Loan

    He cannot take loan in the name of the company and if he does so, the company does not take any responsibility for it.

    The duties performed by a Company Secretary are manifold. He is one of the most important professionals in a company. Many firms have the confusion of choosing between full time and part time company secretary services. Each option comes with its own set of advantages and disadvantages. Consider your needs and preferences prior to making the final decision.

    Feb 5 2016

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    A few tips for effective fund raising

    No matter whether you are a startup company or a five year old business, the need for fund raising is realized by all. But, what type of fund raising is good for you, what are the factors worth considering prior to fund raising- all these and similar questions must be addressed before beginning with the venture.
    Once you have found your answers, you are all set to look for opportunities to raise funds. Below mentioned are a few tips that can help avoid wasting of time and efforts during the process.

    Set your expectations

    Starting with fund raising, it is crucial to comprehend that the process demands time, in fact plenty of time, along with a well-planned strategy. Reason being, there are multitude of organizations competing for funds. Additionally, the grind of capital raising each year leads to internal motivation and image problem, particularly when the organization is unable to achieve sustainability after some years.

    Make certain to set highly focused, long-term goals, similar to your strategy.

    Elaborate your value proposition

    Donors are interested in knowing whether or not the money they offer will be used for processes other than just incremental changes. The higher the amount of funds you are seeking, bigger should be the impact you have on the donors. Represent yourself as more than flowery vision and build a transformation statement.

    Clearly explain how your organization would make a positive difference to the world.

    Know your Internal Rate of Return (IRR)

    An effective selling tool to build is clearly knowing your internal rate of return. The IRR provides a picture of how donor’s money would help an organization to move forward, towards sustainability. This is usually beneficial for large donors who are interested in knowing whether their money will help a company to turn into a long-term sustainable organization, so that it would not realize the need for funds in future, or it will only proffer short term benefit.

    Provide training to your team

    While opting for fund raising Sydney, it is viable to know that there are diverse roles in its strategy. It is crucial to assign these roles to right individuals within your organization. Know who could successfully play the role of engagers, askers, connectors and stewards in your company.

    If you are devoted to raise notable amount of money, consider of looking for professional help. A seasoned and reliable chief financial officer (CFO) can help you in your venture. Owing to his experience, expertise and network, he can take your business to a next level.

    Even though hiring a professional for fund raising can be expensive, the positive results they can bring to your fund raising venture are worth the investment.

    Know your audience

    When the non-profit teams wish to acquire support of large foundations, it is important to understand that majority of these foundations serve as one time donors. Reason being, they aim at increasing their brand recognition, while hoping that their contribution allows your organization to gain desired success.

    Thus, whenever you receive support the second time, celebrate the moment. This means that you are successfully accomplishing your goals and are satisfying current donors.

    Stick to your strategy

    Responsibilities and uncertainties are the common reasons that can divert you from your fund raising strategy. It is easy to drift from your goals and objectives.

    To deal with this situation, prioritize your plans and regularly review progress reports to determine if there is anything, changing which can improve the results.

    Be creative

    Build creative strategies to leave a positive impact on donors. For example, you can request your donor to create a matching gift to receive which your firm has to raise matching capital within stipulated time. This helps your donors to know how serious you are about raising funds.

    Being an entrepreneur, you might be well versed with the challenges involved in raising capital. However, dedicated assistance of a CFO can reduce the efforts required in the same. If you are a small company, opting for services of a part time CFO makes an ideal choice for you. These professionals offer similar services of a full time CFO, but at relatively lower prices. You can equally benefit from services offered by them.

    Fund raising is important for any company to grow and expand, so take your decisions carefully.

    Sep 25 2015

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    Role of CFO to Obtain Funding

    There are different types of business activities that need to be performed by the business owners. They have to quantify the performance of the business through the financial statements. When you are going to use these statements related to the funds, they describe the sources and utilizations of the resources of your company. In order to centralize the administration of these resources, business owners prefer to hire a chief financial officer or CFO. The role of the CFO is divided into three major sections to understand the job for any kind of business. Take a look at below mentioned important facts about the role of a CFO to get funding:

    Treasury responsibilities

    A CFO can be held responsible for the present financial condition of a particular company. He or she needs to determine on how to invest the money of the company to get huge revenue and profit in different manners. It takes the liquidity and risk into consideration. The CFO needs to decide on the best combination of equity, dent and internal financing. Additionally, he or she manages the company’s capital structure and is also responsible for solving problems related to it.

    Controllership responsibilities

    These are the duties that can make up the diffident looking section on the role of a chief financial officer. With these types of duties, a CFO needs to understand that he has to present and report the relevant and timely information related to the funds of a particular company, for which he or she has hired. There are different stakeholders of the company, including creditors, shareholders, analysts and other management members. All of them are dependent on the timeliness and accuracy of the information provided by the CFO. He or she needs to decide that whether he or she is going to provide with the accurate financial information as it places impact on the financial aspect of the company. With the use of this financial information, a lot of decisions will be taken, leading towards the success of a company.

    Economic approach and forecasting

    As mentioned above, the CFO is responsible for the present or previous financial condition of the company, with which he or she is associated. But not only this, the CFO is an integral component that affects the future of the financial situation of the company. He or she must be capable of detecting and reporting the regions of the company that are not so much efficient and reliable. The CFO needs to give his or her suggestions to the company’s management members on how to increase the capital of the company. A CFO must be capable of projecting the long term image of the company’s financial statement.

    Some duties, such as budgeting, benchmarking, financial analysis and forecasting, executive reporting and management, needs to be performed by the CFO. There are lots of business advisory companies available in different parts of the world, offering services by assigning a professional CFO to the particular company, which are in a need of evaluating the financial information to get more funds to raise capital.

    Jan 7 2015

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    Business Advisors in Sydney – Assisting Commercial Entities in establishing successful businesses.

    There are many people who dream to have their own business but managing a business is not easy and it is going to take lots of sweat and money to establish a successful business. For everything you will need a business financial plan. There is a wide range of disciplines and activities revolving around the money management and valuable assets. In simple words it is an act of bringing finance into business or organization. There are number of ways by which business can be financed and each of them is having their own advantages and disadvantages. Overall it is a complicated process and you will need the aid of the chief financial officer. Here is a comprehensive guide on the business finance complexities and how professional finance advisors can ease down them for you.

    Tax planning

    This is the most complicated issue that you will have to deal with. Financial situations and goals of a business keeps on changing, they are never constant. This will in turn change your taxable income management. For all these you will need a financial advisor that can aid you in keeping up with the plans aligned with your existing needs. They are also aware of the tax benefits in business.

    Business assessment

    To make your business successful you will need time to time business valuation.  Your business advisors can do this on your behalf. They can aid you in assessing your business and also integrating that vital information with your financial situation in your business. This provides the business owners with a precise view about the plan that you can design for future.

    Business protection

    This is the first thing that is going to come in your mind when you are going to establish business. There are huge risks involved in business as well as profits. Professional advisors can explain the benefits of developing protection and insurance plans according to the size of your business. Business can likely invite events of failure and disruption; your employees might face disability and resign. In such cases a protection plan is a must.

    Succession planning

    There are plenty of needs and requirements that we have, when it comes to business. Some want to establish it so that they can pass it on to the next generation or another organization. For all this detailed planning is required.  Business advisors can aid you in laying out succession plan that can meet all your personal as well as business needs.

    Employee benefits and retirement plans

    Offering benefits is the key to attract and also retain old employees. Because your employees are the one who are running your business successfully it is important that you think about sharing some benefit with them. This is a very strong strategy that definitely works. Your financial advisor is going to provide you with strategies that will work best for you. Everyone is going to enjoy working in your organization.

    Whatever are your business finance needs, a professional finance advisor can help you in walking out safely and successfully. It is must to hire them for your business growth , finance needs and cash flow solutions Sydney.

    Dec 19 2014

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    Few trends showing Corporate Governance and Repsonsibilty will stay

    Corporate governance has gained a much higher profile in the last few decades in the wake of various corporate scandals and collapses. Corporate social responsibility (CSR) is now becoming much more a part of mainstream corporate governance as there is a recognition that a company cannot have in the long-term to operate in isolation from the wider society in which it operates. Regardless of whether you call it CSR, corporate responsibility, environmental, social and corporate governance  or sustainability, a common understanding is emerging around the world: a company’s long-term financial success goes hand in hand with its record on social responsibility, environmental stewardship and corporate ethics.

    The broadest way of defining social responsibility is to say that the continued existence of companies is based on an implied agreement between business and society and that the essence of the contract between society and business is that companies shall not pursue their immediate profit objectives at the expense of the longer-term interests of the community.

    The costs to business and society of getting it wrong and the benefits of getting it right are increasingly apparent. However, the question remains whether this is a passing trend or one that will continue to reshape the profile of business. Several big trends indicate that corporate sustainability is here to stay:

    1. Transparency
    If a company is transparent enough and reports material facts in real time, stakeholders will have more confidence in the management. Consequently, they will be more willing to invest in the company, thereby reducing the cost of capital. Transparency also helps those in charge to avoid fraud and put measures in place against it. All these factors put together enable the firm’s productive capacity and productivity to improve.

    2. Trust
    The ever-growing impact of business on society means that citizens and consumers expect corporate power to be exerted responsibly. As citizens more often are sceptical, self-organised and prone to challenge authority, the corporate community will have to raise its learning curve on building trust. This means being proactive and thorough in how a company views its responsibilities and impacts on society, and then showing how it manages operations accordingly.

    3. Community participation
    Companies that collaborate with scientists, civil society and public regulators and show early on that they are part of the solution will come out ahead. Environmental issues are a good example of this.

    4. Accessing new markets responsibly
    Business is moving from resource taker to market builder. With economic growth migrating southward and eastward, foreign direct investment is becoming more about building and gaining access to new markets and less about simply exploiting low-cost inputs.

    5. Initiatives to engage companies
    Means for engaging in corporate sustainability are plentiful and growing. Initiatives, standards and consultancies are booming at national and global levels.

    6. Going Global
    The relentless march toward globalization will continue to stretch the scope of corporate responsibility. Corporate social responsibility leaders will be increasingly accountable for responsible behavior all along their supply chains.

    For business, environmental, social and governance responsibilities are no longer add-ons. Corporate governance and corporate responsibility are intertwined. There is increasing influence from shareholders, other stakeholders, and also government/international legislation.They are integral to success.

    While the great majority of companies have yet to commit to this trajectory, there is a strong upward growth curve in actively engaged companies, with a vanguard taking serious action in all key markets. The growing feeling is that corporate sustainability has drawn a line in the sand, and it’s best for business to get on the right side.

    Oct 1 2014

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    Is NSW the power house of Australian Economy?

    We should be proud to live in the state of New South Wales (NSW). The state of NSW contributes more than 30% of the Australian gross domestic product. In terms of population, NSW is the home to more than 32% of Australia’s total population. In addition, almost 28.3% of its population is born overseas as opposed to the Australian average of 26.9%. The state of NSW has one of the best employment growths in Australia with one of the lowest unemployment rates in Australia. The financial and professional services constitute almost 20% of the state’ economy.

    The NSW Government had done exceptionally well to make NSW one of the premier states. The last state budget was handed down on 17 June 2014. The budget forecasts a healthy surplus of $660 million in 2015-2016 and a stronger surplus of $2,155 million in 2016-2017.

    In order to maintain NSW’s pole position, the budget has allocated $15 billion for infrastructure expenditure. The investment will include spending on major upgrades to Pacific Highway, North West Rail Link, WestConnex and South East Light Rail Link. Also, introduction of light rail system in Parramatta is one of the highlights of the state budget. There will be spending on major projects in health sector at Westmead, Gosford and St. George hospitals. There are a number of quality initiatives in this budget to promote health, education, tourism, housing sector and regional development.

    Overall, the focus of the state government has been to provide solid platform for the growth of business and providing better opportunities for the people of NSW.

    The Australian Chapter of the Institute of Chartered Accountants play an important role to further trade ties and promoting business between Australia and India. It’s members are involved in almost every aspect of the expanding business relations between these two countries. The Chapter is organising its high profile 3rd International Conference on 19 September 2014 in Sydney. The conference will be attended by high profile speakers in the world of business and finance.

    By Raman Bhalla, CPA (Aus), CIMA (UK), CA (Ind), Bcom (Ind)

    Sep 9 2014

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    How to raise capital for your business?

    Whether your business is a start-up business or the business in expansion mode, raising adequate capital for your business is highly important to make your business successful. A well-structured and executed Capital raising service process could add tremendous amount of value to the business.

    Capital could be raised either through debt or equity instruments or combination of the two.

    There are a number of considerations while raising capital including:

    – Business plans
    – Management plans
    – The existing capital structure or optimisation of capital structure
    – Proposed usage of the funds
    – Cash flow position of the business
    – Stage of the business
    – Debt position
    – Hedging
    – Tax considerations
    – Corporate Governance

    The presentation of the overall management plans could play a critical role in capital raising process.

    We have a number of years of experience in aspects of raising capital either through debt or equity. We can work with you to understand your business needs and find an optimal solution to create highest amount of value for your business.

    We have successfully worked with a number of industries including property, technology, financial services, film production, manufacturing and range of other industry segments.

    We aim to make capital raising process as smooth as possible for you.

    Get a reliable service for Capital Raising in Australia at Proactivecfos. Please contact us for an obligation-free discussion on 61-2-8064 1112 or email us at: info@proactivecfos.com.au

    Aug 27 2014

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    What it takes to be a successful CFO

    Tips for young professionals to make it big in the sector

    What is it that big companies out there are looking for in fresh recruits? If a career path to the post of a CFO is what you are planning, read on to know what exactly it takes to succeed.

    In the recent years, we have seen the emergence of a creed of young and talented professionals who are not afraid to leave the security of tried-and-tested ways to success, in order to adopt the riskier route. As a result, we today see so many more business execs in their late twenties or early thirties handling the reigns of pivotal departments like strategy, capital raising, business mergers & acquisitions and many more in some of the biggest corporate houses not just in Australia, but all across the world. They are enthusiastic, passionate and brave—with the right amount of managerial sense—ready to rule the world. They have all that is required to propel them through the highly saturated market of MBAs and CAs; the only trick is to figure out what ‘that’ is.

    If the top masters are to be believed, they opine in unison that what they look for in their successors to the power-positions in today’s corporate scene is way more than just technical know-how. In an interview with the Forbes magazine, Ben Mulling, CMA, CPA, CITP, CFO at TENTE Casters Inc. & member of the IMA Global Board of Directors said, “There are actually two main issues I’ve experienced with today’s young professionals. One is soft skills—communication and leadership skills… It’s not something not a lot people are coming out of college with and it’s noticeable when you interview students.” As he goes on to describe the second issue, he explains how it is so difficult to find young employees who just do not know how to adopt alternative approach to solve a practical problem, different from the singular way that particular problem has been solved in times gone.

    Some of the most competitive and demanding businesses today, like corporate governance, accounting outsourcing, managing funds and grants in Australia present a constant demand for talented, new professionals who can take the experience from the seniors and infuse it with their risk-taking attitude to create some exemplar events on the market front. With a little practice, the right kind of guidance and enough determination, you can be just that—the rising star on the horizon of Australia’s corporate world.

    Feb 14 2014

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    Economic challenges and opportunities ahead for Australia

    Overview

    Australian Productivity Commission predicts Australia’s living standards are expected to grow at a lower rate or even fall over the next decades. Australia’s population is expected to grow from 23 million in 2012 to 38 million by 2060. The forecasted lower participation rate combined with tremendous growth in aging population will put increasing pressure on the resources available for the Government to provide key services in to the future.

    The scenario presents both challenges and opportunities for Australia. There has been extensive debate around potential solutions by enhancing productivity, jobs growth and promoting competition to achieve the sustainable income growth to maintain higher living standards in Australia.

    The financial system plays a critical part in achieving higher productivity, enhancing competition and promoting jobs growth. There are various challenges and opportunities which require careful analysis, policy framework and determined execution on a medium to longer term basis. Some of these topics are briefly discussed below:

    Challenges and opportunities

    1. Focus on Small to Medium Enterprises (“SME”): SMEs are the cornerstone of the Australian economy. According to its report by Department of Innovation, Industry, Science and Research in 2011, SME sector employed more than 70% of total the work force and contributed almost 58% of the total industry value addition. There is a plenty of room to grow for this sector particularly in its exports contribution beyond its current levels. A well designed policy framework is required in promoting the growth, innovation and fostering the efficiency in the SME sector. An efficient and flexible infrastructure together with easy financing for the growing and start up businesses will be the key to the future success.
    2. Efficient tax system: The current taxation system is complex and laden with various inefficient taxes at all levels of the government. Simpler, broad based and lower tax rate system is required to attract capital and growth of the existing businesses. There were some reviews of the state of existing tax system which came up with worthwhile recommendations to pursue. The tax system requires detailed review and to aligns its objectives with the aim to future economic prosperity for Australia. The focus of the tax system should be to enhance innovation, support SMEs and provide incentives for new ventures.
    3. Self Managed Superannuation System (“SMSF”): SMSF is an attractive retirement savings option for the rapidly growing number of Australians. There are approximately $500 billion of assets under the SMSF pool. SMSF is critical to the integrity of the whole Australian retirement savings system. At the same time, a flexible and long term policy framework is required for this investment to be channelled into priority areas with good returns where private or public investment is otherwise hard to manage. Through good policy framework, SMSF could be used to fill up the gaps in the priority capital intensive sectors.
    4. Infrastructure and capital investment: With growing population, Australia needs huge investment in infrastructure and capacity building on a medium to longer term basis. May it be roads, rail, airports or ports massive investment is required. There is competition among countries to procure limited capital available for the big capital projects. The challenge for Australia is to provide creative products, incentives and solutions which provide attractive returns for the investors on one hand and on the other hand, efficient planning and execution of infrastructure projects is critical to boost nation’s productivity.
    5. Knowledge economy: In order to maintain and grow the living standards for Australians going into the future, Australia needs a visible shift towards knowledge economy. The focus on creating value addition and innovation for its products and services should be on forefront of robust debate. More funding and incentives may be considered for both commercial and academic research.
    6. Western Sydney: Western Sydney is a high growth region for the Australian economy. It is represented by diverse and young community which is growing at a rate of 1.6% which is well above NSW average rate of 1.1%. The community is represented by more than 100 nationalities. Western Sydney’s annual Gross Regional Product (GRP) is of about $95.6 billion in 2010-11. This is nearly one third of the Sydney Metropolitan GRP. Nearly 60% of businesses operating in the area are self employed companies, with more than a quarter of these employing less than 5 employees. [Source: NSW Government: Premier & Cabinet].
      The region presents a huge opportunity to boost trade and investment with emerging Asian countries through its diverse resident labour force and businesses. A balanced and strategic plan is required at all three levels of Government to put major focus on this area for future growth and productivity initiatives.
    7. Asian century: This century is called Asian century. Australia is placed in a unique position with close physical proximity to the fast and emerging economies of China, India, Indonesia and other Asian nations. Asian countries are aiming for higher growth to overcome their infrastructure bottlenecks and population needs. Australia is in a good place to take strategic advantage of the situation. Australia has both economic and regional interest in this area. Australian businesses are already undertaking major trade and investments. The region presents a huge export market for Australian goods and services. Further initiatives and planning focussing through Australia’s SME sector may be explored to fast track links with the region and exploring non traditional area of high end research to benefit both sides.
    8. Financial markets and regulation: An efficient and transparent capital and financial markets is the key to achieve Australia’s future economic prosperity. Global financial crises highlighted the need for regulation of the market. A number of regulations and legislations have come in to force to regulate these markets by different market and banking regulators. However, there has to be some balance between over regulation and free flow of capital. It has a direct impact of increasing the cost of doing business in Australia. A flexible funding mechanism is needed for SME sector and for entrepreneurs to easily access finance for their ventures and business growth.
    9. Corporate governance and disclosures: A robust corporate governance and disclosure framework is fundamental to efficient functioning of capital markets and smooth flow of investment in the Australian economy. The focus should be on self regulation and international best practices in this area. A coordinated approach is required among leading regulators across the world to ensure efficient governance framework and harmonisation. Australia has one of the best corporate governance practices. Australia should lead and develop a market for its products across the world. Free trade agreement with different nations should prominently include exchange of restraint free professional services.
    10. Climate change action and economic impact: In future, climate change action will again be on top of the agenda at world stage. It has natural economic impacts for most of the nations. Australia is not immune to this additional economic cost. However, it presents an opportunity for Australian technology and business to develop and export its products. At the same time, a longer term strategic approach is required now to address this economic issue at the micro level. Business opportunity and any potential significant infrastructure investment should be at the centre stage for any meaning full discussion on climate change action plan.

    Conclusion:

    Growing and aging population presents both economic challenge and opportunity for Australia. Australia has a strong economic and infrastructure base with a range of opportunities in front to define the space for its future economic prosperity. The key lies to enhance productivity and competition through specific measures including transparent and less regulated financial system. A consistent economic policy framework is fundamental to plan and achieve the income growth required to sustain Australia’s position as one of the top economic destinations.

    Raman Bhalla
    E: ramanbhalla22@yahoo.com
    Mobile: 0401 057 224

    Dec 9 2013

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