Proposed legislation released on Friday would require Australian listed companies that make material misstatements of financial accounts to explain whether or not that has led to them reducing executive bonuses. 

The legislation, first flagged in Febuary in response to CAMAC recommendations, will "strength Australia's remuneration disclosures while also reducing the regulatory burden on companies", said Bernie Ripoll, the parliamentary secretery to the Treasurer.

"This reform builds on the additional powers we have provided to shareholders to have a say over the level and composition of executive pay."

Submissions for and against the new bill close March 15 2013.