The Australian Government has said that it is committed to ensuring that listed companies continue to provide shareholders with an option to receive hard copies of annual reports each year at no additional cost to shareholders.

The commitment came during a recent meeting between a Printing Industries delegation comprising Government Relations Manager and General Manager of ACT Barry Neame and National Policy and Research Manager, Hagop Tchamkertenian, with Treasury officials in Canberra responsible for drafting legislation to put into effect the Government’s new policy on company annual reports.

While there is a chance for the legislation to be operational from 1 July 2007 pending passage of the legislation by both houses of parliament, Printing Industries representatives told the Treasury officials that it would be preferable if the legislation did not come into effect until 1 July 2008 to allow companies more time to plan for the change. Such a timeframe would also help to minimise the impact of the new government policy on the printing industry.

In addition to the commitment on the hardcopy option for shareholders the government is also prepared to support in principle Printing Industries proposal of encouraging listed companies to prepare shareholder friendly reports.

The Association representatives highlighted recent overseas developments concerning annual company reports including the United Kingdom's new Companies Act 2006 which came into force on 20 January 2007. Under the  Act, listed companies are required to seek both general shareholder agreement by resolution at an annual general meeting and individual agreement of each shareholder before the company can use website communications as the default.

Commenting on the meeting, Barry Neame underlined the importance of ongoing dialogue with the government and the bureaucracy.

“They now understand our position and we fully understand their policy so hopefully ongoing discussion can result in an outcome that is acceptable to all stakeholders concerned,” he said.

Hagop Tchamkertenian said Printing Industries considered that a transition period would be appropriate.

“Given the large amounts of investments that have been undertaken by printing companies operating in the sector in recent times, a transition period is important to allow the sector to properly plan and adjust to the new policy on annual reports,” he said.

“We are also pleased that the Government seems to be prepared to support in principle shareholder friendly reports which could open up new opportunities for our industry,” he said.