Governance, Risk, and Compliance Handbook: Technology, Finance, Environmental, and International Guidance and Best Practices

CHAPTER 49

AUSTRALIAN CORPORATE GOVERNANCE: THE ASX PRINCIPLES

Anthony Tarantino, PhD

49.1 AUSTRALIAN MODEL OF CORPORATE GOVERNANCE

49.2 WORLD BANK CORPORATE GOVERNANCE RATINGS

49.3 THE ASX 10 PRINCIPLES

(a) Principle 1: Lay Solid Foundations for Management and Oversight

(b) Principle 2: Structure the Board to Add Value

(c) Principle 3: Promote Ethical and Responsible Decision Making

(d) Principle 4: Safeguard Integrity in Financial Reporting

(e) Principle 5: Make Timely and Balanced Disclosure

(f) Principle 6: Respect the Rights of Shareholders

(g) Principle 7: Recognize and Manage Risk

(h) Principle 8: Encourage Enhanced Performance

(i) Principle 9: Remunerate Fairly and Responsibly

(j) Principle 10: Recognize the Legitimate Interests of Stakeholders

NOTES

49.1 AUSTRALIAN MODEL OF CORPORATE GOVERNANCE

Australia has taken an approach to corporate governance and improved internal controls that should be considered a role model. In our World Bank ratings of six elements of corporate governance, Australia scores very highly against the top gross domestic product (GDP) nations and against its neighbors in East Asia and Southeast Asia.

Australia has created corporate guidance based on best practices for ten key process areas. Companies may chose to not follow the recommended best practices, but must explain why. Formed in August 2002, the Australian Stock Exchange (ASX) Corporate Governance Council brought together 21 professional and business groups with the mission "to develop and ...