Understanding Corporate Collapse and Governance Practices

Running head: CORPORATE GOVERNANCE
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Corporate Governance
Understanding Corporate Collapse
Student Details:

CORPORATE GOVERNANCE 1
Contents
Q1 Corporate Collapse in Australia..................................................................................2
Q2 Collapse of financial institutions................................................................................. 5
Reference List............................................................................................................ 7

CORPORATE GOVERNANCE 2
Q1 Corporate Collapse in Australia
Corporate Governance is the driver of the performance of an organization. The term
corporate governance has a broad concept relating to monitoring the actions of the company
in regards to its stakeholders which includes employees, customers as well as investors and
shareholders (Capaldi & Idowu, 2017). There are various codes and, policies and practices
are incorporated to streamline the process of corporate governance. Corporate governance
can be explained as broader view of business ethics. It is crucial to follow certain rules
towards social, regulatory and market environment. The underlying reason for the failure of
Australian companies in 1980 crisis is that the disclosure requirements have not been
properly enforced. The major reason of the failure of Alan Bond, Laurie Connell of
Rothwells and the Girvan Corporation is Australian securities Regulation (Tricker, 2015). It
is important to note that the guidelines should be followed properly. As corporate governance
is the crucial element of sustainable future of any organization. In 1980 the huge wave of
companies collapse occurred due to the weak and fragmented security regulations. The bond
corporation and Girvan Corporation involved in deals with the government which led to loss
of 600 Million Australian dollars of public investors between 1983 and 1987 (Wahlquist,
2015). The government lent loans, financial guarantees, and assets at inflated prices to the
companies. It is a political scam which occurred due to poor governance practice.
With changing era, the corporate governance codes are developing and growing. It is
important to observe that importance of corporate governance codes is well recognized. The
best practices in corporate governance are being adopted by all the private as well as public
listed companies. Corporate governance codes acts as the points of regulation. It is important
that Australian regulators enforce and regulate company financial conditions in order to