ASX Corporate Governance Principles and Practices

This assignment analyzes the Australian Securities Exchange's (ASX) Corporate Governance Principles and Recommendations. It delves into the structure and purpose of these principles, examining their applicability to both listed and non-listed companies. The document highlights key aspects like board composition, management oversight, ethical conduct, and the ASX's role in promoting transparency and accountability within Australian corporations.

Running head: CORPORATE LAW
Corporate Law
Name of the Student
Name of the University
Author Note

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Table of Content
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Corporate Governance and its importance..................................................................................2
The structure and purpose of corporate governance principles and recommendation provided
by ASX........................................................................................................................................3
ASX “if not, why not” approach..................................................................................................4
The implications of governance principles..................................................................................5
History and the evolution of the ASX governance principles and Recommendation.................5
The connection between listing rules and ASX principles..........................................................6
Making disclosures regarding implementation of corporate governance principles...................7
Corporate Social Responsibilities................................................................................................7
Application of the ASX principle on the non-listed companies..................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction about ASX Corporate Governance
The ASX Corporate Governance Council Principles and Recommendation was
introduced in 2003. Later, in 2007 it has published their rewritten edition and in 2010. They have
introduced another new recommendation which has described the diversity of the remuneration
committee. In 2002, the corporate council has convened for monitoring the organization,
shareholders, industry groups, valuable insights and other specialist of the shareholders.
Discussion
The Importance of the Corporate Governance
The Corporate Governance is a corporate body which helps to control the organization and
instructed for managing the governance by the Board of directors. According to the rules of
corporate governance the shareholders are entitled to appoint the auditors and directors of the
company for satisfying the governmental structures expert the government strategies. It helps to
provide the regulations and responsibilities to the board of the organization for setup the
leaderships and manage the management of the business it also corporate to introduce the
Framework for each are directed to follow:
 The activities by the board members which affect the organizations
 The contribution of the corporate governance towards the individual directors of the
company
 New structure of the organization where the corporate governance is applicable
 the strength between the governance and company helps to form the business and runs
according to the rules of corporate governance with the stakeholders

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 The corporate governance is the actual source of the organization which helps to regulate
and control the managment body of the organization.
The Australian Securities and Investment Commission also controls the corporate
governance for considering various factors which include:
 emergency risk management
 engagement by the shareholders
 executive remuneration
 managing the conflicts under the government organizations
 the activities by the organization which is involved with the amount of share capital
 the culture of the organization
The framework and aim about recommendation and principles of the corporate
governance provided by ASX
The corporate governance practices for the purpose to regulate the organizations which
are authorized under ASA for adopt various government practices and policies (Du Plessis,
Hargovan and Harris 2018). The government practices and policies include the complexity
history scale of factors size and culture of the organization. The structure of the principles and
Recommendation has incorporated for managing several factors for which include:
 Ethical working culture and take the responsibilities for helping the whole entity under
the corporate governance
 the structural framework of the board for adding values which is required towards the
corporate according to the corporate governance for disclosure and formation of the
respective responsibilities and natures of the management

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 on the protection of the management and create a safeguard entity according to the rules
of the corporate governance
 giving respect to the equitable rights of security holders who are helping to collect and
collects the facilities and information for exercise the rights effectively
 Providing balance disclosure within the time which are entitled as per the rules of legal
entity and concerned about the matters with the actual reasonable material affects
 the identification and management of the risk assessment where the listed entity helps the
risk management structure which are appropriate to work on the effectiveness of the
framework
 the remuneration process which should be processed wait fairness and responsibilities
that are listed under the entity and must be paid remuneration to the directors which are
enough to retain and attract the motives
ASX “if not, why not” approach
The corporate governance practice has been selected according to the listed entity for
adopting the matters for the board of directors who are bound to take the responsibilities for
managing the corporate business with due diligence and care. The principles and
recommendations has been used for helping and considering those circumstances which are may
or may not be adopted but if it has accepted the terms it will must give reasonable facts about the
update the recommendation in the if not why not approaches. This approach is only applicable
when it ensures about the entities of governance arrangement under the appropriate level of
marketing strategies. The organization has a right to investment on this community by the
security holders and stakeholders for controlling and managing the corporate governance issues.
The security holders are entitled to collect all the factors which will help to provide information

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and decide about the information how to process the board under the particular resolution. The
investors of the company has equal right to use such circumstances where they can gathered
information and form such decisions where “why or why not” they can invest in the entity
securities. However the “if not why not approach” is recognized as one of the fundamental
matters to operate the principles and Recommendation under the corporate governance.
The implications of governance principles
ASX has entitled to the principles of corporate governance according to the listed entities.
It is important and required to found that the principles which have been formed for apply in the
organization in Australia and where those companies are monitored and control for internally or
externally. In the most of the recommendation the process helps to identify and modify those
applications which are listed under the external entities (Du Plessis, Hargovan and Harris 2018).
In other ways the separate section which was immediately acted after the recommendation has
been established about the process for the listed entities which will be managed for the
recommendation and principles of ASX governance. Those principles and recommendations are
related quit the applications of a 6 listed entities and only applied on the specific areas. The
principles and recommendations always help to establish the process where the contemporary
reflects on the appropriate government standards and the corporate bodies who help to found the
useful policies and their own government rules or practices.
The revolution and History of the ASX governance Recommendation and principles
The Corporate Governance Council of ASX was first incorporated by ASX in the year of
2012 of August. It has been structured in collaboration with various entities which are including
shareholders industry groups and businesses which offered individually their perspectives and
insights on the governance issues. Lately it was operated through a charter Adoption in 2

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November 2012. The Corporate Governance Council helps in the modification of those issues
which are in relation with principal based corporate governance practices under the listed entities
of ASX. The untitled recommendations are also introduced for promoting the strength of the
investors of the organizations and related with the listed entities who are required to meet with
shareholders expectation. According to the relationship with the governance of the country under
the listed entities ASX is become the benchmark of the corporate governance practices according
to the listing rules 4.10.3 and works against the Recommendation of the Council. However the
practices and recommendations of the corporate governance not able to perform or confirm to
disclose those parts where the rules are positively works on the listed entities for adopting the
counsel required recruitment practices without any out forces. The corporate governance also
helps to provide fixable alternative governance practices and Recommendation according to the
rules of particular circumstances where the alternatives are considered by the board (Du Plessis,
Hargovan and Harris 2018).
The Relationship between ASX principles and the listing rules
According to the listing rule of 4.10.3 of ASX principles and recommendations it has
been undertaken by the listed entities which describes about the annual report of the corporate
governance. It means the rules are used to introduce with the requirements which are stated about
the statement of the corporate governance (Beekes, Brown and Zhang 2015). It also helps to
disclose the extent with the entity is bound to follow such recommendation prepared by the
Council at the time of reporting period when the entity was found not to be followed the
recommendation. According to the rule of government statement those can operate their own
rules separately and identify the recommendation and state the reasonable factors. The principles
also provide such a suggestion about the recommendation to the Council for adopting the

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alternative practices and recommendations. It is the duty of the Council that if not why not
requirements are must operated under the principal and recommendation. This also provides the
guarantee to receive the actual discloser for the market value and enters under the entity of the
governance practices. The governance has also mentioned that it has identified about the time
when the governance has approved about the entity of the balance data of the board of the
organization. ASX is the corporate body which is capable to include their entities with the annual
report of completed appendix in 4G for the suggested disclosing recommendation and listed
under the listing rule 4.10.3. However, it is the duty of the Corporate Governance, that they must
include their annual report along with the copy of the Corporate Governance statement to ASX.
Formation of the disclosures about the implementation of the Corporate Governance
It is the duty of the Corporate Governance to recommend and entitled the disclosure
process under the ASX principles. The council is formed to take advantages from those
opportunities which are entitled under the lists and choose to help for working under the Listing
Rule 4.10.3. The entitlements which got the approval from ASX are only able to works on the
incorporate materials by the references under any organization. It is the duty of the Council that
it must recommends the corporate governance statements and proves the governance disclosure
according to the annual report of the organization (Beekes, Brown and Zhang 2015). The
provided references help to collects the materials which are easily available and applicable for
the interest parties who can able to obtain the copies or read the statements. The Governance
Council is recommended for the pedantic and legalistic approaches under the ASX corporate
governance. The listed entities also explained and followed those recommendation which helps
to describe the policies and other relevant policies for the Corporate Governance. The listed

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entity is only applicable under the recommendation of 4.1 of the ASX Corporate Governance
Recommendation and Principles.
The entitled listed entities are helps to view the effectiveness of the arrangement and
communicate for giving securities and other broader investments through an appropriate
approach towards the Corporate Governance (Du Plessis, Hargovan and Harris 2018).
Corporate Social Responsibilities
The corporate social responsibilities are introduced to provide helps towards the board of
the organization. It also helps in monitoring and controlling the governance, social and
environmental issues which are enterprises the risk management structure of the risk
management on the sustainability of the business of ASX (ArAs 2016). The procedure of ASX is
applicable on such policies which are framed for subscribed the risks and ways to improve for
the impacts on the society. The strategies are also addressed the financial markets and the
process of conducting the business. It is also necessary to participate in the different ASX
practices which are entitled to work on the Carbon Disclosure Project for emission and waste.
These policies also actively work on the Good Index Series which controls several issues of
environmental and social criteria. The World Federation of Exchanges Annual Survey is another
important project which helps to exchange of rules under the Corporate Governance. It is the aim
of ASX to introduce a highly motivated professional team which actively works to beat the skills
and other projects. According to the Culture under the corporate governance, ASX works on the
board and management of the organization to activate on the best available skills which helps
them to review and revise the behaviors and values. The ASX’s Anti-Bribery, Code of Conduct
and Fraud Control and Whistleblowers Protection policies are formed for conducting their

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responsibilities and ethical decision making procedure by ASX directors and employers and
(Beekes, Brown and Zhang 2015).
Implementation of the ASX principles on the non-listed companies
The recommendation and principles of ASX under the Corporate Governance is not
relevant for the non-listed organizations. The non-listed organizations are only entitles to use the
recommendation in the value, long-term survival and prosperity on the decision making process
by them. The Exit Strategies under the corporate governance help to describe about the burden
by finding an entrepreneur who is entitled to make the business successful. This is also
applicable on the unlisted companies which involving with the significant investment risks for
financiers and shareholders. On the Global Financial Crisis, ASX principles and
recommendation helps to build up the organizations with a strong corporate reputation (ArAs
2016).
Conclusion
The Corporate Governance helps to provide the regulations and responsibilities to the
board of the organization for setup the leaderships and manage the management of the business.
It is important and required to identify that the principles which has been formed for apply in the
organization in Australia and where those companies are monitored and control for internally or
externally. The principles and recommendations always help to establish the process where the
contemporary reflects on the appropriate government standards and the corporate bodies who
help to found the useful policies and their own government practices or rules. It is the aim of
ASX to introduce a highly motivated professional team which actively works to beat the skills
and other projects.

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Reference
ArAs, G., 2016. A handbook of corporate governance and social responsibility. CRC Press.
Beekes, W., Brown, P. and Zhang, Q., 2015. Corporate governance and the informativeness of
disclosures in Australia: A re‐examination. Accounting & Finance, 55(4), pp.931-963.
Du Plessis, J.J., Hargovan, A. and Harris, J., 2018. Principles of contemporary corporate
governance. Cambridge University Press.
Liang, D., Lu, C.C., Tsai, C.F. and Shih, G.A., 2016. Financial ratios and corporate governance
indicators in bankruptcy prediction: A comprehensive study. European Journal of Operational
Research, 252(2), pp.561-572.
Majumder, M.T.H., Akter, A. and Li, X., 2017. Corporate governance and corporate social
disclosures: a meta-analytical review. International Journal of Accounting & Information
Management, 25(4), pp.434-458.
Sivathaasan, N., 2016. Corporate governance and leverage in Australia: A pitch. Journal of
Accounting and Management Information Systems, 15(4), pp.819-825.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.