Ethics and Governance in Propertylink Group Limited

Running Head: ETHICS AND GOVERNANCE 1
Ethics and Governance
Student’s Name
Institution Affiliation

ETHICS AND GOVERNANCE 2
Ethics and Governance
Executive summary
The report outlines the importance of ethics and good governance to the company and
the society at large. The position of Property link Group Limited in the community and how
it distributes its income amongst the shareholders are also outlined in the report. The
remuneration and benefits of the board of directors are also highlighted. The scope of the
report revolves around the income of the Property link Company, the expenses of the
company, and the objectives and strategy of the company. The company is focused on
utilizing the wealth of the shareholders in a manner that it brings large profit margins. The
company has a strategy on investment in industrial properties, enhance the growth of assets
and maintaining a reasonable capital structure. The primary goal of the company is to
security holders with superior risk-adjusted returns from Australia industrial and office real
estate.
The Board of directors chaired by, Peter Lancken has the mandate to ensure that
Property link Group Limited works smoothly. It has seven directors, whom Five of them are
non- executive directors while two of them are executive directors. The two executive
directors are involved in the day to day activities of the company. The company's financial
year ends on 30 June of every year. The company prepares the statements of comprehensive
income and that of financial position as at 30 June 2018. The report shows the expenses of
the company against the revenue associated with Propertylink Limited. The report shows
some theories applied by Propertylink in the realization of its objectives. The agency theory
and Kant's deontological theory is used by Propertylink Company to uphold ethics and
governance.

ETHICS AND GOVERNANCE 3
Introduction
Property link Group is a large corporation in Australia, and it is one of the largest
companies formed in the year 2016. Property link Group consists of three branches in one,
that is Property link Holdings Limited (PHL), Property link trust (PT), and Property link
Australian Industrial Partnership (PAIP). In the year 2016, shares in Property link holdings
and Property link trust were merged into one. The Property link Investment Management
Limited is the responsible entity that is in charge of managing the property link group. The
units in Property link trust and Property link Australian industrial partnership cannot be
treated as separate entities. They all form the shares in Property Link Group and can only be
traded as one. This company deals in Australian industrial and office real estate.
The report of property link Group shows how the management have interlinked the
objective of the company regarding ethics and governance. The company's primary purpose
is to provide to the investors the external funds from the office of real estate. The strong
corporate governance which upholds the attainment of strategic goals is very crucial to the
success of Property link. The Stakeholder theory, agency theory, and the stewardship theory
were used by the administration of Property link to develop objectives which are in line with
ethics and governance. The stakeholder theory allowed the management of the company to
have a strong relationship with the employees and the suppliers. The network of associations
with numerous gatherings can influence necessary leadership forms and decision making in
the company. The stakeholder theory focuses on the administration decision making and
foresees that all the interests of the shareholders are put into consideration (Soltani &
Maupeti, 2015).
The stewardship theory as proposed by Donaldson (1997) focuses on how the
stewards utilize shareholders wealth through proper organization performance. The top

ETHICS AND GOVERNANCE 4
management, as the stewards, works on behalf of the shareholders and should integrate their
objectives as part of the company Glinkowska & Kaczmarek, 2015). The Agency theory, on
the other hand, is an economic theory. The relationship between the stakeholders and the
agents (top management) shows that there is a difference between ownership and control of
the company. The agents are hired to work on behalf of the shareholders in running the
company. In this case, the owners of the company should not be involved directly in the
control of the company because it can bring about a conflict of interest. The agent should
focus on projects that bring high profits and earn a fixed income without any incentive
component.
The essential outcome of this research is the focus on proper utilization of
stakeholder's wealth. The top management of the property link group should not use their
position for individual benefit. A manager with outstanding ethics and good governance will
ensure effective utilization of capital for the interest of shareholders (Arjoon, 2000). The
report gives an insight on how the wealth is distributed and the process of formulating the
objectives of the company. The goals of the property link group give shows how the top
management works in line with the wants of the stakeholders. The report is useful to the
auditors when checking the financial statements of the company (Hilgartner & Hurlbut, 2017)
The Corporate Governance at Propertylink Group
The board of directors of Propertylink Group is chaired by Peter Lancken, who is an
independent director. He chairs the board of directors, but he is not involved in the company's
day to day activities. Stuart Dawes is the company's managing director and also a member of
the board of governors. Ian Hutchinson, Sarah Kenny, Cristopher Ryan, and Anthony Ryan
are members of the committee who also are non-executive Director. Stephen Day is an
executive director, and he is the member of the board as well as the member of the executive