logo

Corporate Governance of Commonwealth Bank: Principles, Theories, and Impacts

   

Added on  2023-06-05

14 Pages3264 Words493 Views
Running head: REPORT 1
CORPORATE LAW
STUDENT DETAILS:
9/13/2018

REPORT 2
Contents
Background of company-................................................................................................................3
Meaning and concept of good corporate governance-.....................................................................4
The corporate Governance Principles and Recommendations for Commonwealth bank-..............4
The Royal Commission into Misconduct in Commonwealth bank –..............................................7
Important theories of corporate governance of company-...............................................................8
Consequences of poor corporate governance................................................................................10
Impacts of good corporate governance of company-....................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

REPORT 3
The need of corporate governance has risen because of developing concern regarding
non-compliance of financial reporting standards and duties by BOD and management of the
company. The corporate governance is considered as an essential factor. The corporate
governance is the process of the polices the company itself. It is a process of regulating the
corporation like an independent state, establishing its own customs, approaches and rules,
regulations to its workers from the high to the low stages. The corporate governance of
corporation is proposed to enhance the duty of the corporation and to ignore substantial tragedies
before they happen.
In the following parts, the meaning of good corporate governance structure, principles of
corporate governance, and various theories of corporate governance and consequences of poor
corporate governance structure of common wealth bank is discussed.
Background of Commonwealth Bank-
Commonwealth Bank of Australia is chosen for the evaluation of the corporate
governance. Commonwealth Bank is multinational bank in Australia. The Commonwealth Bank
is multinational bank with business across New Zealand, USA, `and UK. It gives various
financial services, retail services, services related to banking, insurance, investment,
management of funds, superannuation and services related to broking (Tricker, 2015). The
Commonwealth Bank is largest listed bank on the Australian security exchange as of August
2015 with brands such as Bank west, ASB bank of New Zealand, Commonwealth Insurance and
Commonwealth Security.
In year 2018, findings from the Royal Commission into misconduct in superannuation,
banking and industries related to financial services have directed an adverse culture in the Bank,

REPORT 4
amid claims of scam, dishonesty, and money laundering, among many other crimes (Schwartz,
2011).
Meaning of good corporate governance-
The corporate governance is tools, procedures and connections by which companies are
organized and guided. The principles of corporate governance recognize dissemination of powers
and duties among various members in the company such as BOD, managers, stakeholders,
creditors, investors, auditors, and controllers. It also includes processes, rules and regulations for
taking decisions in corporate affairs. The corporate governance involves the procedures by which
objectives of company are set and followed in respect of the social environment, supervisory and
market environment. The corporate governance mechanisms involve reviewing the activities,
policies, approaches, and decisions of companies, their agents, and influences shareholders
(Tricker & Tricker, 2015). The corporate governance practices are influenced by attempts to
support the stakeholders’ interest. The good corporate governance refers to developing the
structure of management in the company to develop relationship among BOD, management,
workers, and the stakeholders to serve interest of shareholders of company.
Corporate governance statement of Commonwealth Bank-
The corporate governance statement details key corporate governance engagements and
approaches of the Commonwealth Bank of Australia. The Group is dedicated to high corporate
governance norms. The Commonwealth bank has a corporate governance structure that supports
the performance and sustainability. It secures and develop and increases shareholder and other
stakeholder interests (Zientara, 2017). The Commonwealth Bank frequently monitors corporate

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Corporate Governance of Commonwealth Bank: Principles, Theories, and Impacts
|14
|3189
|257

Corporate Governance: Background, Impact, and Recommendations
|14
|2793
|138

CORPORATE GOVERNANCE AND FRAUD
|5
|688
|19

Ethics and Governance
|15
|3895
|94

Corporate Governance and Ethics
|16
|3614
|3

Commonwealth Bank's Wrongdoings Based on Royal Banking Commission Report
|8
|1700
|103