Corporate Bankruptcies in Australia: Analysis of Management Policies and Corporate Governance Practices

FINANCIAL ACCOUNTING
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Executive Summary
In the recent past, Australia has witnessed a surge in the incidence of corporate bankruptcies
raising concerns from a host of stakeholders. In order to analyse these failures, three case
studies have been chosen. The report focuses on the management policies, business decision
making and corporate governance practices that were responsible for the failure of these big
companies. Liabilities while believed to be the major culprit has been analysed but not found
to be the major culprit. The key issue indicates in these corporate failures relates to the poor
corporate governance practices coupled with unethical and irresponsible management at the
helm which acted for safeguarding their own vested interests. The report also briefly presents
some of the measures to strengthen the corporate governance framework in Australia in the
aftermath of these corporate failures.
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Table of Contents
Introduction...........................................................................................................................................3
Measures to improve ethical conduct....................................................................................................3
Corporate Bankruptcies (Critical Analysis)...........................................................................................4
Lapses in Corporate Governance – A common cause...........................................................................6
Recommendation...................................................................................................................................7
References.............................................................................................................................................8
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