Corporate Governance in Australia
Introduction: A discussion on corporate regulation and governance is of great importance in today’s economic world. A number of high profile collapses such as HIH, One Tel, Harris Scarfe, Ansett, focuses ones attention on governance issues.
Nevertheless, corporate governance is not a static thing and even if basic structures remain the same, policies and procedures surrounding those structures should constantly be reviewed to ensure that the structure is working properly.
Globalisation yields challenges not only for industry, but for the corporate regulators as well. Today, we are faced with the issue of large Australian companies wishing to expand their international presence, without giving up their Australian domicile. The global presence by these companies is important to Australia’s economy, but the modifications and exemptions granted to facilitate dual listed companies has to be carefully ensured and reconciled with the continuing obligations applicable mainstream corporate Australia.
There are a range of regulatory authorities and business groups which play key roles in promoting good corporate governance in Australia-ASIC, APRA, and FRC. The corporate sector in Australia is regulated mainly by agencies like – the Australian Competition and Consumer Commission (ACCC), the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation authority (APRA). Others are the Australian security Exchange (ASX), The Australian Accounting Standard Board (AASB), etc. The role of these regulators has been increasing mainly because of the growth and dynamism of financial institutions, the high proportion of Australian citizens active in these markets, governments promotion of the superannuation industry, and the risks for investors, depositors and creditors.
A Mix of mandatory and voluntary requirements governs corporate governance in Australia. The ASX’s Corporate Governance Code, are voluntary guidelines emphasized by an ‘if not, why
Nevertheless, corporate governance is not a static thing and even if basic structures remain the same, policies and procedures surrounding those structures should constantly be reviewed to ensure that the structure is working properly.
Globalisation yields challenges not only for industry, but for the corporate regulators as well. Today, we are faced with the issue of large Australian companies wishing to expand their international presence, without giving up their Australian domicile. The global presence by these companies is important to Australia’s economy, but the modifications and exemptions granted to facilitate dual listed companies has to be carefully ensured and reconciled with the continuing obligations applicable mainstream corporate Australia.
There are a range of regulatory authorities and business groups which play key roles in promoting good corporate governance in Australia-ASIC, APRA, and FRC. The corporate sector in Australia is regulated mainly by agencies like – the Australian Competition and Consumer Commission (ACCC), the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation authority (APRA). Others are the Australian security Exchange (ASX), The Australian Accounting Standard Board (AASB), etc. The role of these regulators has been increasing mainly because of the growth and dynamism of financial institutions, the high proportion of Australian citizens active in these markets, governments promotion of the superannuation industry, and the risks for investors, depositors and creditors.
A Mix of mandatory and voluntary requirements governs corporate governance in Australia. The ASX’s Corporate Governance Code, are voluntary guidelines emphasized by an ‘if not, why
References: Lipton P., Herzberg A., 2006. Understanding Company Law. 13th ed. Sydney: Thomson Lawbook Co. Hanrahan, P., Ramsay L., Stapledon, G., 2004. Commercial Applications of Company Law. 5th ed. Sydney: CCH Australia Limited. Websites: ASX Corporate Governance Council, ‘Principles of Good Corporate Governance and Best Practice’, Australian Stock Exchange, March 2003, http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=364&companyid=ASX (accessed 05 Feb, 2008). http://www.shareholder.com/visitors/dynamicdoc/document.cfm?CompanyID=ASX&DocumentID=364&PIN=&Page=3&keyword=Type%20keyword%20here (accessed 06 Feb, 2008) Faculty of Law, corporate Governance eJournel, bond university, year 2007, Brendan Scandret http://www.asx.com.au/supervision/pdf/role_of_asx_in_corporate_governance.pdf Role of Australian Stock Exchange in Corporate Governance, Eric Mayne, Chair ASX Corporate Governance Council, At the International conference “Recent Developments and Perspectives of Demutualised Exchanges AS SROs”, 27 October 2005 http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/Corporate_Governance_IOSCO_Perspective.pdf/$file/Corporate_Governance_IOSCO_Perspective.pdf (accessed on 6 Feb, 2008) http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/corporate_governance_summit.pdf/$file/corporate_governance_summit.pdf (accessed on 5 Feb, 2008)