Governance in a Globalizing World PDF
Added on 2021-04-21
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Running head: GOVERNANCE IN A GLOBALIZING WORLDGovernance in a Globalizing WorldName of the StudentName of the UniversityAuthor Note
1GOVERNANCE IN A GLOBALIZING WORLDTable of ContentsSummary of the arguments in the Article........................................................................................2Corporate Governance Principles....................................................................................................3Issues associated with the theories..............................................................................................3Issues arising from the corporate governance theories in the article...........................................5Significance of issues to Business and Public.................................................................................6Importance of Corporate Transparency to Business....................................................................6Importance of Corporate Transparency to Public........................................................................8Self-perspective on corporate governance issues discussed in the article.......................................8References......................................................................................................................................10
2GOVERNANCE IN A GLOBALIZING WORLDArticle on Allegations of poor corporate governance and failure to meet disclosure obligationsof Hydroponics Company LimitedSummary of the arguments in the Article On March 18, the board of the Hydroponics Company Limited has been replaced in themidst of allegations against the company that it has poor corporate governance arising from thefailure to fulfill its disclosures obligations. The Chairperson of Australian medical cannabiscompany, Ian Mutton and other three directors were expelled from the six-person board in votesthat were supported by almost 68 percent of shareholders as per the statement made by the ASX. The former chairperson and the Director of the company, Alan Beasley removed the fourdirectors in January on the grounds of lack of transparency giving rise to other corporategovernance issues as is stated in company filings. Beasley contended that Hydroponics failed todisclose that the head of the subsidiary Cannedeo was leaving the company in March. Thecompany further, failed to provide a complete notice for its extraordinary general meeting until itwas put under pressure by Beasley’s solicitors. On the other hand, Mutton contended that the allegations made in the notice by Beasleywere false. In regards to the replacement and expelling of the Board, Mutton asserted that hisleadership was in accordance to the objective of the company, which was to ensure growth inmanufacturing and availability of market medicinal cannabis products in Canada and Australia.It is solely the decision of the shareholders of the company to change the Board or theydemanded to relapse to the Board in the same way as it used to function, which has been dulyrespected and accepted.
3GOVERNANCE IN A GLOBALIZING WORLDIan Mutton also stated that the stocks of the company have been rising and falling in theemerging medicine cannabis sector since Australia has eased regulations, thus, promising todevelop cannabis-derived pharmaceutical industry. He claims the company shall prosper as soonas the issues pertaining to the board of the company is resolved. As it is a well-known fact that a good governance system is perceived to be as essential inobtaining debt capital for start-up business as it is, in maintaining shared positions among thestakeholders as well as the shareholders of the company. Corporate governance refers to theadministration of an organization in a way it is controlled and directed (Tricker and Tricker2015). It deals with the respective powers, responsibilities, roles and the accountability of theBoards of an organization. The primary issue that has been indicated in this article is related tothe failure of the corporate governance of the organization on the grounds of lack of transparencyin the business activities. Effective corporate governance framework requires that everyorganization must make timely and accurate disclosures regarding the material matters of thecompany, which includes governances, performance, financial institution and ownership of thecompany.Corporate Governance PrinciplesIssues associated with the theoriesThe concept of corporate governance entails the relationships, processes and systems thatauthorizes or exercises control over the corporation. It includes the mechanisms that holdcompanies and the persons exercising control over the company liable for any misconduct orfailure of the company to follow the ASX corporate governance principles.
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