Why ASX corporate governance principles need a shake-up
Questions must be answered, including whether the broad consensus-based approach of the council should continue or it should be an advisory body to the bourse.
Australia has an enviable reputation for strong corporate governance. This reputation reflects the nation’s willingness to adapt and strengthen governance where necessary.
The collapse of HIH highlighted that robust board oversight is a critical check on the potentially devastating actions of management. It was out of the ashes of HIH in 2002 that the ASX Corporate Governance Council emerged under the auspices of the stock exchange – an industry-led initiative aimed at restoring investor and government confidence in how publicly listed companies were run.
Loading...
Mark Rigotti is managing director and chief executive of the Australian Institute of Company Directors.
