Impact of Governance and Law on Build on Construction Private Ltd

This report provides a comprehensive analysis of corporate governance and legal requirements within the context of Build on Construction Private Ltd. It explores the significance of knowledge management and e-commerce in enhancing business operations, particularly in areas like online selling and data acquisition. The report delves into the concept of governance, its importance in business, and examines fundamental styles of corporate governance, including unitary and dual board structures. It further discusses various types of governance mechanisms, such as internal, external, and independent audits, along with the core principles of corporate governance as outlined by the Australian Stock Exchange Corporate Governance Council. The impact of governance and law on Build on Construction Private Ltd is assessed, highlighting relevant legislation like the Partnership Act 1958, Corporation Act 2001, and anti-corruption laws such as the Bribery Act 2010. The report emphasizes the importance of legal compliance, risk management, and ethical business practices for the company's sustainable growth and stakeholder protection, concluding with recommendations for maintaining transparency and ethical standards.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
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Table of Contents
Concept of Knowledge management and e-commerce...................................................................3
Governance and legal requirements.................................................................................................3
Concept of governance and its importance in business...............................................................3
Fundamental styles of the Corporate Governance.......................................................................4
Types of Government mechanism...............................................................................................5
Principles of the Corporate Governance......................................................................................5
Impact of the Governance and Law on Build on Construction private Ltd.................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Concept of Knowledge management and e-commerce
In the recent years, it is crucial for all the organizations to manage the learning activity
governance, legal requirement and to utilize the technological advancement in order to gain the
competitive advantages (Turban, E., Whiteside, King & Outland, 2017). Governance is a process
to maintain the business operation transparently. The legal requirement is to keep the legal norms
properly during business operation. However, the information technology system leads the
organization to store and manage the huge data of the consumers. On the other hand,
entrepreneurship is a process to take the risk in a business to gain profit. In the context of Build
On Construction Private limited the e-commerce development and knowledge management is
important to expand their business. However, in the context of every business knowledge
management among the staffs is necessary as it enables them to share information, build proper
communication with their co-workers.
Knowledge management in the project causes staff innovation through utilizing the
information technology (Wang et al., 2017). On the other application of the e-commerce system,
Build On Construction private limited will be a beneficial approach for them as it helps them to
enhance their online selling and B2B selling. On the other hand, the company can gather
demographic data through the social media and web contacts in the e-commerce system.
Governance and legal requirements
Concept of governance and its importance in business
Governance is a process that is designed to provide assurance regarding the
accountability, transparency, law, empowerment, and stability in a business practice (Ararat,

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Black & Yurtoglu, 2017). On the other hand, governance is an institutional environment in
which the stakeholders of the business can interact. As for example, UNDP, World Bank, and
OECD refer that governance is the power of the authority in a country to manage the political,
economic and administrative factors. However, there is a good relationship between the
governance and the management. In the context of Build on Construction private Ltd. the
governance sets the high-level goal and the policies based on which the management of such
organization run their business towards the direction that is set by the governance body.
Governance observes the management and performance of the organization to ensure
that an organization is an operation based on the public interest and their stakeholders those are
associated with the organizational mission (Rowley, Shipilov & Greve, 2017). Hence, based on
this Build on Construction private Ltd can build their goal and implement their mission and
strategic vision. Another function of the governance is direct the management of an organization
to gain their desired outcomes and the rules of the governance provide assurance to the
organizations that they are working ethically and legally (Dias, Rodrigues & Craig, 2017).
However, this factor of Governance makes Build on Construction private ltd more responsive in
their operation.
Fundamental styles of the Corporate Governance
Corporate Governance is associated with the policies, rules, relationship, laws, and
regulation in the context of the different business organizations (Albassam et al., 2017). Unitary
board of governance consists of executives and the managers that are responsible to manage the
corporate information and data. However, if the company supervisory board and the management
board then this organization is categorized under the dual board. Such dual board will enable the
Build on Construction private Ltd to maintain a balance between the chairman and CEO. Lack of

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direct contact between the executive of two boards resists the information flow in an
organization (Uyar, Gungormus & Kuzey, 2017). Partnership management is another element of
the corporate governance and it consists of the top management and highly involved board.
However, there is a supporting work between such two groups is necessary for context of Build
on Construction private Ltd as both groups are involved in setting the strategies and policies and
the board members informed the top management about the execution of policies.
Types of Government mechanism
Corporate governance includes internal, external and independent audit mechanism
(Katmon & Al Farooque, 2017). The internal mechanism involves in the controlling of the
corporation operation in the context of Build on Construction private Ltd. This control method
will enable the organization to monitor their activities and the progress in order to take better
actions for their business. However, carrying out a smooth operation within the organization is
the prime focus of internal mechanism (Goranova et al., 2017). The external mechanism involves
in managing the external stakeholders of Build on Construction private Ltd and control the
business outside the organization. Therefore, the independent audit is the process of observing
the financial statement of the organization in order to understand the financial performance of the
organization. This will enable the employees and stakeholders of Build on Construction private
ltd to understand the financial stability of their organization.
Principles of the Corporate Governance
According to Australian Stock Exchange Corporate Governance Council, it is crucial for
the business organization to make a listed entity within the proper time and balanced the
disclosure (Coffee & Palia, 2016). Therefore, Build on Construction private Ltd, needs to
respect the rights of the security holder by giving them proper information timely as it will

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protect their business from legal harm. Establishment of the risk management framework is a
vital principle corporate governance. Hence, Build on Construction private ltd needs to develop
risk management framework and to monitor it properly in order to save their employees from
any injury during their work.
Impact of the Governance and Law on Build on Construction private Ltd
The public international law enables the business organization to operate their business
outside the country (Zhu & Tang, 2016). The business organizations also have to maintain the
private international law and domestic law while operating their business. In the context of Build
on Construction private ltd, they need to follow the Partnership Act 1958 while working with
partners and this law enables such company to maintain a contractual law that will be followed
by the each partner to enhance the business profit. On the other hand, Corporation Act 2001 and
Australian securities and investment Act 2001 both are categorized under the company law
(Kumar et al., 2017). Build on Construction private ltd needs to follow such legal requirements
as it enables the managers of this organization to understand their duties and responsibilities
properly. Stakeholder protection is the major concern of Corporate Governance law. This law
enables the business organization to maintain the right of the shareholders. Build on Construction
private Ltd can treat their shareholders equally by maintaining this law.
Every company needs to be complying with the corporate Governance law as in
compliance with law may lead the organization to give the penalty (Albassam et al., 2017).
According to the Crimes Act 1994, any in-compliance with the Governance corporate law affects
the business of an organization. Anti-corruption legislation Act is vital for any corporate sector
to reduce the corruption in their business. Bribery is one kind of corruption that destroys the

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market of a business and associated with the terrorism (Wang et al., 2017). A large number of
companies think that without paying bribe they will not able to get the international contract.
Hence, by following the Bribery Act 2010 the Build On construction private limited can
achieve the international transaction fairly as it will aside them from the serious consequences
related to the crime of bribing. Incompliance with the anti corruption law may lead the
organization to face legal obstruction and it may affect the growth and reputation of the business.
The Foreign Corrupt practice Act 19977 includes the compensation and the injunction against
the business that fails to comply with the legal norms of corporate governance. Other
consequences may occur for the construction organization as for example, loss of government
contracts may lead the Build On construction private limited to face legal issues in their business.
The corporate offense includes the anti corruption management as it acts as the defense
mechanism (Dias, Rodrigues & Craig, 2017). In the context of Build On construction private
limited, they should maintain the anti corruption law in order to carry out a fair business in the
international market. However, proper compliance with the corporate governance law and the
legal requirements this organization will be able to make a fair and transparent business by
protecting the value of their shareholders.
Conclusion
The above piece of work focuses on the rules and regulation of the corporate governance
and the necessary legal requirements in the context of Build On construction private limited.
However, this organization needs to follow the all legal norms associated with corporate
governance to carry out a fair business provision. Risk management in the workplace is a prime
area of the corporate governance as for the constructions company it is the major area to protect

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their employees during their work. On the other hand, maintenance of the anti corruption law is
necessary for such organization as any incompliance with the anti corruption law may lead the
company to face legal challenges that will affect their business. Apart from this compliance with
the rules and regulation of the corporate governance is beneficial for an organization to run their
business smoothly in a transparent process, which ensures a visible growth in their business.

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References
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Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm
value and profitability: Time-series evidence from Turkey. Emerging Markets
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Coffee Jr, J. C., & Palia, D. (2016). The wolf at the door: The impact of hedge fund activism on
corporate governance. Annals of Corporate Governance, 1(1), 1-94.
Dias, A., Rodrigues, L. L., & Craig, R. (2017). Corporate governance effects on social
responsibility disclosures. Australasian Accounting Business & Finance Journal, 11(2).
Goranova, M., Abouk, R., Nystrom, P. C., & Soofi, E. S. (2017). Corporate governance
antecedents to shareholder activism: A zero‐inflated process. Strategic Management
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Katmon, N., & Al Farooque, O. (2017). Exploring the Impact of Internal Corporate Governance
on the Relation Between Disclosure Quality and Earnings Management in the UK Listed
Companies. Journal of Business Ethics, 142(2), 345-367.
Kumar, P., Kumar, N., Gupta, S. K., & Sharma, R. K. (2017). Impact of Corporate Governance
and Financial Parameters on Profitability of the BSE 100 Companies. IUP Journal of
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Rowley, T. J., Shipilov, A. V., & Greve, H. R. (2017). Board reform versus profits: The impact
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815-833.
Turban, E., Whiteside, J., King, D., & Outland, J. (2017). Business-to-Business E-Commerce.
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on Corporate Governance: Evidence from Turkish Non-Listed Companies. Australasian
Accounting Business & Finance Journal, 11(1), 9.
Wang, K., Lu, H. C., Lee, R. C., & Yeh, S. Y. (2017). Knowledge Transfer, Knowledge-Based
Resources, and Capabilities in E-Commerce Software Projects. Journal of Global
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Zhu, K., & Tang, W. (2016, June). The relationship between corporate governance and bank loan
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