In: Economics
Based on this week's readings, discuss the purpose of Australia's ASX 10 Principles of Good Corporate Governance.
These Principles and Recommendations set out recommended corporate governance practices for ASX-listed entities which the Council believes are likely to produce good governance results and meet the fair expectations of most investors in most circumstances
Requiring this clarification ensures that the public provides an appropriate level of detail on the governance structures of the company so that: security holders and other stakeholders in the investment community can have substantive discussions with the board and management on matters of governance; security holders can weigh that detail into their decision on how to vote on particulars
All ASX listed entities are protected by the Principles and
Guidelines, irrespective of the legal form they take, whether they
are formed in Australia or elsewhere, and whether they are operated
internally or outside.
Some guidelines require adjustment when applied to the specified
organizations which are externally controlled. Immediately after
the recommendations below, there is a separate section detailing
how listed organizations operated externally can apply and make
reports against the recommendations.