Corporate Governance Recommendations for Getswift Ltd

This article discusses the corporate governance recommendations for Getswift Ltd to comply with ASX requirements and effectively acquire its primary consumer named Pursuit Pty Ltd. The recommendations include establishing relevant committees, designing a proper remuneration committee, and making provisions for establishing an audit committee.

qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmrtyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
COMPANY ACCOUNTING

Getswift Ltd
Australia’s corporate governance and continuous disclosure framework is regarded the best in
the world. This is the reason why it has also been adopted by various other jurisdictions.
Moreover, the Corporations Law in Australia require organizations to keep the market
informed of significant developments and there are negative consequences for those who fail.
In relation to Getswift Ltd, it is notable that the acquisition of Pursuit Pty Ltd necessitates
variations in its current corporate governance practices so that it can easily adhere to the ASX
Corporate Governance Principles.
In relation to structuring the Board of the company, it is notable that there are no committees
established for the purpose of discharge of responsibilities. Furthermore, since acquisition of
Pursuit Pty Ltd is a major task for Getswift, it is recommended that it facilitates proper
provisions for the establishment of relevant committees like the nomination committee. The
reason why establishment of such committee is crucial for the company can be attributed to
the fact that it assists in examining the selection and appointment approaches of the
company1. Furthermore, such committee must comprise of only non-executive directors who
are responsible for reviewing Board succession measures, assessing performance of the
Board and directors, and evaluating required and desirable competencies of such board
members. Overall, with such recommendation, the company can be easily assisted in
discharging its responsibilities in an effective way. Another crucial recommendation for the
company in relation to compliance with the ASX Corporate Governance Principles is that it
must make proper provisions for establishing an audit committee. Since the company has not
designed an audit committee and it is overseen by the Board, it must be noted that integrity of
financial reporting can only be attained through an audit committee2. Without an audit
committee, Getswift cannot facilitate good corporate governance measure in the entire
industry and may fail to achieve penetration into the market even by acquiring its major
customer Pursuit Ltd. Furthermore, in relation to this, it must be noted that such
establishment of audit committee must also have their own charter wherein the roles and
1 Oskar, Kowalewski, “Corporate governance and corporate performance: financial
crisis.” Management Research Review 39, no. 1 (2016): 1511. doi: 10.1108/MRR-12-
2014-0287
2 Ntongho, Rachael Ajomboh, “Culture and corporate governance convergence.”
International Journal of Law and Management 58, no. 5 (2016): 536. doi: 10.1108/IJLMA-
04-2015-0016
2

Getswift Ltd
responsibilities of committee members are clearly laid down. Moreover, if integrity of
financial reporting is obtained through establishment of an audit committee, the company can
easily comply with ASX Corporate Governance Framework3. Besides, such integrity is
demanded by every stakeholder in the market and if Getswift does not consider such
recommendation, it may fail to retain trust and confidence on the part of such stakeholders.
The third recommendation to Getswift Ltd is that it must establish an efficient remuneration
committee in its framework so that it can adhere to the requirements of ASX Corporate
Governance Principles. The reason behind this can be attributed to the fact that the scale and
size of the company has restricted it to frame a remuneration committee that will result in
future complications after acquisition of Pursuit Ltd. Moreover, the roles and responsibilities
of such committee are overseen by the Board of Getswift itself, thereby creating a scenario
wherein it is becoming overburdened in nature. In relation to this, it is recommended to the
company that it must design a proper remuneration committee so that the policies associated
to remuneration are focused upon in an effective way. Besides, such committee must
primarily comprise of non-executive directors of the company wherein majority are
independent in nature4. However, if the board can manage the roles and responsibilities of the
Group, it can do so but there are various guidelines in relation to remuneration of executives
and non-executive directors. In relation to this, it is observable that the company offers
remuneration to its non-executive directors based on the level of remuneration paid to non-
executive directors by organizations of similar size in the industry5. It is recommended that
the company must remunerate its non-executive directors normally in the form of cash,
superannuation contributions, non-cash benefits, or equity. Furthermore, such directors must
not receive bonus payments or options by the Board. In addition, these directors must not be
offered retirement benefits except for superannuation advantages. Therefore, the company
must consider this recommendation of overseeing its fair and responsible strategy of
3 Clarke, Thomas, International Corporate Governance (New York: Routledge, 2010). 65
4 Hampson, Fen Osler, Turbulent Peace: the Challenges of Managing International Conflict
(Washington, 2012). 22-26
5 Goergen, Marc, International Corporate Governance (Prentice Hall, 2012), 44
3

Getswift Ltd
remuneration for complying the objectives or requirements of ASX Corporate Governance
Principles.
Therefore, these recommendations can be taken into consideration that can allow Getswift
comply with ASX requirements and effectively acquire its primary consumer named Pursuit
Pty Ltd.
4

Getswift Ltd
Bibliography
Fen Osler, Hampson. Turbulent Peace: the Challenges of Managing International Conflict,
Washington, 2012.
Kowalewski, Oskar. “Corporate governance and corporate performance: financial crisis.”
Management Research Review 39, no. 1 (2016): 1494-1515. doi: 10.1108/MRR-12-2014-
0287
Marc, Goergen. International Corporate Governance, Prentice Hall, 2012.
Rachael Ajomboh, Ntongho,.“Culture and corporate governance convergence.”
International Journal of Law and Management 58, no. 5 (2016): 523-544. doi:
10.1108/IJLMA-04-2015-0016
Thomas, Clarke. International Corporate Governance, New York: Routledge, 2010.
5