Question Answer on Corporate Governance 2022

Running head: CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
Name of the student
Name of the university
Author note

CORPORATE GOVERNANCE1
Answer to Question 1
The term “corporate governance” labeled as the structure of relationships, rules,
processes, and systems within which the power is controlled and exercised within the company.
It entails the method by which the corporation and those who are in dominance are held to be
accountable. The good practices of corporate governance enhance the trust and confidence of the
investor that is crucial to the capability of bodies who are registered on ASX to participate in the
capital (Salim, Arjomandi and Seufert 2016). The purpose of the practice of corporate
governance for the entities that are listed on ASX that, in the view of the council, is probable to
attain outcomes of good governance in addition to that fulfill the fair expectations of the
investors in most of the circumstances(Miglani, Ahmed and Henry 2015). It has been recognized
by the council, but the diverse entities might legally obtain diverse practices of corporate
governance grounded on a series of factors involving complexity, size, corporate culture, and
history. Therefore for that cause, the recommendation and principles are not obligatory and do
not pursue to suggest the practices of corporate governance that are listed body should adapt. The
recommendation and principles that is implemented to all the corporation approved to ASX
authorized list as a listing of ASX irrespective of the statutory nature they adapt whether the
same is established in the country of Australia and whether they are externally or internally
controlled.
The ASX Council of corporate governance was established in the year August 2002 in
addition to that chaired by the Australian Securities Exchange since its beginning. The ongoing

CORPORATE GOVERNANCE2
goal of the council is to guarantee that the framework that is based on the principles it advanced
for corporate governance endures being guides for the corporation that is listed (Appuhami and
Bhuyan 2015). The corporate governance practices are the dynamic strength that keeps on
emerging. The challenge of the council is to guarantee that recommendations and principles
remain significant for the business of Australia as well as investment communities. The
amendment recommendation and principles are the portions of that procedure. ASX, council, and
the participants of the Australian market generally in commerce in conserving the confidence of
the stakeholders. The efficient practices of corporate governance framework motivate the
corporation to establish values by entrepreneurialism, development, innovation as well as
exploration in addition to that facilitate answerability and the control structure proportionate with
the danger that is involved (Christensen et al. 2015). The fundamental to the structure of
corporate governance is creating the role of senior executives and board. Principle 1 entails with
balancing of experience, independence as well as skill on board proper to the extent and nature
of the operation of the corporations. Principle 2 entails the basic necessity for honesty among
those who can stimulate the strategy of the company as well as financial performance together
with the accountability, and decision making that is ethically sound that is taken in regard not
only to the statutory obligations however also the concern of the shareholders. Principle 3 is
fulfilling the data required of the contemporary investment entity is regarded as paramount in the
context of answerability and drawing the attention of capital.
Thus presenting financial as well as the non-financial position of the company need the
procedure that protects both externally and internally, the integrity of reporting in company.
Principle 4 facilitates the balanced and timely picture of all material (Tricker and Tricker 2015).
Principle 5 laid down the liberty of the owners of the company that is the stakeholders required