Examining Corporate Governance Structure of Lovisa Holdings Limited

Ethics and Governance
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Executive Summary
This report has been developed for the purpose of examining the corporate governance
structure of a selected ASX listed corporation that is Lovisa Holdings Limited. It has been
identified by the report that although it possess an adequate corporate governance structure by
having a shareholder-agency orientation of Board but do not incorporate the use of any type of
social and environmental disclosures that can negatively impact its organizational legitimacy in
the long-term.
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Contents
Part 1: Introduction and Company Summary..................................................................................4
Introduction..................................................................................................................................4
Company Summary......................................................................................................................4
Description of Company..........................................................................................................4
Company Industry....................................................................................................................4
Recent History..........................................................................................................................5
Part 2: Brief overview of corporate governance at Lovisa Holdings Limited.................................5
Composition of Board Members..................................................................................................5
Information from the reports of Chairman and CEO...................................................................6
Remuneration Report...................................................................................................................7
Immediate priorities of the company and actions taken............................................................10
Part 3: Board Orientation of Lovisa Holding Limited...................................................................11
Part 4: Interpretation of company communications using Legitimacy Theory.............................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Part 1: Introduction and Company Summary
Introduction
The purpose of the report is to provide an overall research into the governance and ethical
outlook of a company by analysis of the information present within its annual report. It aims to
examine the corporate governance system of the selected company for promoting its sustainable
growth and development. It also examines the ethical outlook of the company by examining the
orientation of Board and also examining its ways of communication with the use of legitimacy
theory. The company selected for analysis purpose is Lovisa Holdings Limited, a fast fashion
jewelry retailer involved in developing, designing and sourcing of fashion jewelry and
accessories under the Lovisa brand name.
In this context, the report has conducted research in relation to the core activities of the
company, its corporate governance structure, orientation of the board and the different
communication report developed for providing information for conveying the ethical outlook of
the company. The theories that have been applied in the context of the report are agency and
legitimacy theory for discussing the corporate governance structure and ethical context of the
company. The outcomes of the report is stating the effectiveness of the corporate governance
system of the selected company by examination of its key corporate governance policies, board
orientation and examination of the key communication report in accordance with the legitimacy
theory.
Company Summary
Description of Company
Lovisa Holdings Limited is an ASX listed entity involved in retailing of fashion jewelry
and accessories. It is involved in development, designing and merchandising of fashion jewelry
products. The company has the presence of about 326 retail stores across Australia, New
Zealand, Singapore, Malaysia, South Africa, UK, US and many other parts of the world. It is an
ASX listed entity that is being headquartered within Australia (Company Overview, 2019).
Company Industry
The company operates within the fast fashion retail industry of Australia. It has been
established in the year 2010 but has shown quick growth and is presently being recognized as
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