Question

Evaluate the role of Australian Securities Exchange (ASX) in assisting corporate governance in Australia?

Answer 1

Lets consider the question,

ASX: It is defined as, The Australian Securities Exchange (ASX) is the premiere national securities trading system for the nation of Australia, formed in July 2006 when the Australian Stock Exchange (ASE) and the Sydney Futures Exchange (SFE) merged. Like most large securities exchange systems, the ASX offers trading services for stocks, futures, exchange-traded funds (ETFs), real estate investment trusts, and so on. The ASX is ranked as the 11th largest exchange in the world, having a trading volume of $1,454 billion US Dollars (USD) annually and representing Australia as the 14th largest economy in the world

The corporate governance refers to the system by which the organisations are managed and directed. The Australian Securities Exchange (ASX) articulates 10 core principles that play a vital role in assisting corporate governance. These are:

1) Laying strong foundation for oversight and management with the recognition and publication of their responsibilities and job profile

2) Have an independent structure to safeguard and verify the integrity of the company's financial reporting

3) Structure board to an effective size, and composition to ensure that they adequately undertake their roles

4) Promoting of responsible and ethical decision making by demonstrating the company's commitment to ethical practices

5) Recognizing and managing risks by establishing a strong internal control

6) Encouraging enhance performance with regular reviews.

7) Ensuring the fairly composition of remuneration

8) Promoting the timely and balanced disclosure of all material issues about the company.

9) Recognizing the legitimate interests of stakeholders

10) Respecting rights of shareholders by providing important information.