Question

Based on this week's readings, discuss the purpose of Australia's ASX 10 Principles of Good Corporate Governance.

Answer 1

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.