Question

Baxby Fashion Ltd is a long-established Australian company, based in Brisbane that manufactures office cloths. Started in 1995 as a family-owned business, it expanded rapidly with branches around Australia and was listed on the Australian Securities Exchange (ASX) in 2000. The governance structure of Baxby Fashion includes seven directors, four of whom are executive directors and three Baxby Fashion Ltd is a long-established Australian company, based in Brisbane that manufactures office cloths. Started in 1995 as a family-owned business, it expanded rapidly with branches around Australia and was listed on the Australian Securities Exchange (ASX) in 2000. The governance structure of Baxby Fashion includes seven directors, four of whom are executive directors and three of whom are non-executive directors. The four executive directors are Sue Berry (CEO), Gordon Dawn (CFO), Neal Arthur (marketing director) and Bluberry Richard (chief information officer). The three nonexecutive directors are Rogers Burrit (who joined the board in 2013 as the independent chair), Lucy Brian (a widely recognised furniture designer) and Tully McDonald (a solicitor who has been on the board since Baxby Fashion was listed). The Baxby Fashion board has three subcommittees: remuneration, nomination and audit. The audit committee consists of Tully McDonald (chair), Bluberry Richard and Lucy Brian. Provide three compliance concerns with the current structure of the audit committee, according to the ASX’s Corporate Governance Principles and Recommendations. Explain your answers

Answer 1