Disclosure of proxy voting information by Australian managed investment schemes

The US Securities and Exchange Commission requires registered management investment companies to disclose how they vote proxies relating to portfolio securities they hold. The primary purpose of this rule is to enable fund investors to monitor the role of institutional shareholders in the corporate governance practices of public companies. In Australia, despite reform proposals, there are no regulations requiring institutional investors to report proxy voting procedures and practices. There is little evidence of voluntary disclosure of proxy voting by Australian managed investment schemes in equities, indicating that there are costs involved in such disclosure.

Consumer credit code disclosure: Does it work?

Since 1996 all consumer credit transactions in Australia have been regulated by the Consumer Credit Code. The principal means by which the Code purports to protect consumers and prevent market failure is a detailed and prescriptive disclosure regime. There has been little empirical work done on whether or not such disclosure actually improves consumers’ understanding of their credit contracts. By exposing participants to typical consumer credit documents, this research discovered quite poor comprehension of important features of the relevant transactions. Most significantly, there appeared to be little difference in comprehension when the consumers read contracts which complied with the disclosure requirements of the Code, and when they read contracts which did not. These results cast doubt on the effectiveness of the Code disclosure regime.

The forgotten CGT events: Are asset revaluation reserve distributions by trustees of discretionary trusts capital gains?

It is the present practice that asset revaluation reserve distributions by trustees of discretionary trusts are not taxed in Australia. Are such distributions not meant to be taxed, or have relevant sections in the Income Tax Assessment Acts been overlooked? This article will review how trustees of discretionary trusts perform asset revaluation reserve distributions. It then challenges the current accepted view that they can be distributed tax-free to discretionary beneficiaries by analysing relevant CGT events, which the authors regard as forgotten events. It will be submitted that a discretionary beneficiary in receipt of an asset revaluation reserve distribution may have a capital gain which is required to be included in its assessable income. This liability for tax is regardless of the government's recent introduction of s 109XA to address the practice of asset revaluation reserve distributions bypassing the operation of Div 7A of the ITAA 1936 with such distributions.

The role of avoidance coping in the disclosure of trauma

Little research has been undertaken to examine the empirical basis of commonly applied methods of posttrauma intervention. We propose that Pennebaker's work on structured disclosure of trauma provides a suitable analogue to explore questions of interest. The present study asks whether avoidance coping is likely to interfere with abbreviated disclosure of traumatic experiences. Subjects were 118 college students randomly allocated to either a one-session or four-session written trauma-disclosure condition. At 2 months postdisclosure, subjects with high avoidance coping within the one-session condition exhibited significantly more trauma-specific and physical symptoms than all other subjects. Avoidance coping significantly predicted trauma-specific symptoms at 2 months. These findings suggest that single session traumatic disclosure may not be useful for individuals with an avoidance style of coping.

Not if but when: Out-group reactions to the timing of disclosure of an individual's same-sex attractions

One factor that research suggests impedes positive contact between outgroup members is the experience of anxiety that can occur when anticipating negative consequences of such interactions. Research examining attitudes and behaviour towards same-sex attracted individuals indicates that this intergroup anxiety is particularly evident when the anticipated interaction involves members of the same gender. The current studies investigate the effect of timing of disclosure of a person’s same-sex attractions in an effort to identify a means of reducing this anxiety. Study 1 uses a hypothetical scenario to gain insight into participants’ stated preferences for early or delayed knowledge of a person’s sexual orientation. Results reveal an association between experiencing close contact with gay individuals of the same gender in real life (but not opposite gender), and a preference for early disclosure. Results from an experimental study concur with these findings. After a face-to-face interaction task with a confederate of the same gender, participants sit further from the confederate for the late disclosure condition when compared with the early disclosure and no disclosure control. Future studies investigating the interaction between timing of disclosure of same-sex attractions and the intimacy of disclosure (casual vs. intimate), are discussed.