Corporate Governance: Importance, Approaches, and Implementation

Running head: CORPORATE GOVERNANCE
Corporate Governance
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CORPORATE GOVERNANCE
Table of Contents
Part A.........................................................................................................................................2
Condition 1.............................................................................................................................2
Condition 2.............................................................................................................................2
Condition 3.............................................................................................................................3
Part B..........................................................................................................................................4
Introduction............................................................................................................................4
Discussion..............................................................................................................................4
Conclusion..............................................................................................................................7
References..................................................................................................................................9

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CORPORATE GOVERNANCE
Part A
Condition 1
JB HI-FI and Wesfarmers have published their strategies with regards to corporate
governance, practices and policies in a private section in the annual report called the
“Overview of Corporate Governance” and Statement of Corporate Governance respectively.
The work for these organizations is to give out to the stakeholder specific and important
information. The information regarding the function and responsibilities of the associates of
the board, strategies related to risk management, board composition, auditor’s freedom and
the compensation of the directors have even disclosed in the annual report published by the
organization (jbhifi.com.au, 2019).
Condition 2
a. According to the Wesfarmers’s annual report, the organization presently has nine
directors (wesfarmers.com.au, 2019). The annual report of JB HI-FI Limited for the
year 2018 reveals that there are 7 directors (jbhifi.com.au, 2019).
b. Eight of them are non-executive directors. The percentage has been found to be
88.89% (wesfarmers.com.au, 2019) for the non-executive directors. In JB HI-FI, 6 of
them are non-executive directors and percentile is found to be to 85.71%.
c. According to 2018 annual report for Wesfarmers, all the non-executive directors are
independent and the percentage comes to 88.89%.
According to Annual Report of JB HI-FI for 2018, all the directors are independent
and percentage comes to 100%.
d. According to the Annual Report of Wesfarmers for 2018, Michael Chaney AO is the
chairman of the organization (jbhifi.com.au, 2019). The company has taken some of
the hard decisions for the betterment of the company in 2018. The profit recorded was

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CORPORATE GOVERNANCE
from the continuing operation otherwise over all the company witnessed fall in the net
profit of 2018. The company is following the strategies of feasible
(wesfarmers.com.au, 2019).
According to the Annual Report of JB HI-FI for the year 2018, Richard Murray and
Greg Richards are known to be the chairman and group Chief Executive officer of the
organization. The increment sale, gross profit and also net profit has been registered
in 2018. Along it the company has taken some of the crucial decision for the company
in 2018 (jbhifi.com.au, 2019).
e. In 2018 the company of Wesfarmers issued a share of 2342000 shares in which the
director holds 4180000 shares. The percentage is 17.85% (wesfarmers.com.au, 2019).
In Annual report of JB HI-FI, directors holds a share total 461969 the percentage
comes to 0.40% (jbhifi.com.au, 2019).
f. Two of the company has not provided the information on the barred holders.
Condition 3
It is concluded that the percentile of directors who are independent in JB HI-FI is
higher than that of Wesfarmers (wesfarmers.com.au, 2019). Two of the organizations have
non-executive directors and both follows the corporate governance principles of Australian
corporate frame work. Both the company has provided all adequate important knowledge
about the necessary aspects of the organisational corporate governance (jbhifi.com.au, 2019).
The company is also following the corporate regulations to adhere to the rules and regulation
of the governance. Both the company is well adherence to the corporate governance. This
will help them to work smoothly without any hindrance from the Australian government. It
can therefore be inferred that both the organizations have sufficiently published the essential
information with regards to corporate governance.