Corporate Governance | Report

Running head: CORPORATE GOVERNANCE
Corporate Governance
Name of the Student:
Name of the University:
Author’s Note:

CORPORATE GOVERNANCE1
Table of Contents
Part A:..............................................................................................................................................2
History of HIH Insurance Ltd:.....................................................................................................2
Events leading to the collapse of HIH Insurance Limited:..........................................................2
Analysis of the audit report of the HIH Insurance Limited:........................................................3
Analysis of the internal control procedure of the HIH Insurance Limited:.................................3
Analysis of the Board of the HIH Insurance Limited:.................................................................4
Emerging trends in reporting corporate governance practices in Australia:...............................4
Conclusion:..................................................................................................................................4
Part B:..............................................................................................................................................6
Sub part a:....................................................................................................................................6
Sub part b:....................................................................................................................................6
Sub part c:....................................................................................................................................6
Sub part d:....................................................................................................................................7
Sub part e:....................................................................................................................................7
References and bibliography:..........................................................................................................8

CORPORATE GOVERNANCE2
Part A:
History of HIH Insurance Ltd:
HIH Insurance Limited is a publicly listed insurance company based on Australia. HIH
group was the second largest general insurance in the Australia and they had a presence in
various other countries. The HIH Insurance Limited along with many of their subsidiaries were
placed to provisional liquidation on 15th March 2001. The company was incorporated in the year
1968 by Ray Williams and Michael Payne with an objective of providing general insurance
services to the business organizations, with the efficient management and excellent financial
performance, the company had been growing and expanding their business from national level to
international level. They had acquired controlling interest in many other companies in the same
industry. Later on, with a significant fall in profitability and liquidity of the company, the HIH
Insurance Limited collapsed in the year 2001 (Hih.com.au. 2020).
Events leading to the collapse of HIH Insurance Limited:
The main reason behind the collapse of the HIH Insurance Limited was their aggressive
business expansion strategy. The company had been performing very well financially at the
initial stage. With the hope of same performance and with the expectation expanding their
business globally, the started acquiring various companies in various other countries also.
Expansion of their business in an uncontrolled manner and lack of proper management and
coordination and organization, their business started making a loss and the liquidity of the
company had been decreased significantly for the company as a whole along with their
subsidiaries (Hih.com.au. 2020).