The Corporations Act requires shareholder approval for any agreement to pay a prospective executive or director a retirement benefit greater than their final salary multiplied by their number of years of service (with an upper limit of seven years).

Question

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This statement is true according to the Corporations Act, which includes regulations regarding executive and director retirement benefit agreements. Shareholder approval must be obtained for any such agreement that exceeds the final salary multiplied by the number of years of service, up to a maximum of seven years.

The Corporations Act Requires Shareholder Approval for Any Agreement to Pay