Governance in a Globalizing World

Running head: GOVERNANCE IN GLOBALIZING WORLD
Governance in Globalizing World
Name of the Student
Name of the University
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Table of Contents
Arguments in Article: Summary......................................................................................................2
Theories of Corporate Governance..................................................................................................4
Issues arising from the theories...................................................................................................4
Corporate governance issue raised in the article.........................................................................6
Importance of issues to Public and Business...................................................................................7
Significance of ethical business practice and accurate disclosure to business............................7
Significance of ethical business practice and accurate disclosure to public................................8
Self-perspective on the issue...........................................................................................................8
Reference list.................................................................................................................................10

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Article on GetSwift served notice of class action from shareholders on grounds of non-
disclosures and misleading and deceiving conduct
Arguments in Article: Summary
On 22 February 2018, Business News Australia published an article relating to GetSwift
that has been served notice of class action from shareholders. The Logistics Software Company
GetSwift has been facing a class action from shareholders. The company is alleged to have been
engaged in deceptive and misleading conduct. Two other legal firms are considering launching a
class action against the company. The law firm Squire Patton Boggs has applied to initiate
action in the Federal Court against the company while law firm, Corrs Chambers Westgarth
has claimed to initiate legal action against the company as well.
The shareholders have been initiating class action against the company on grounds of
continuous misleading and deceptive conduct and non-disclosures on part of the company. The
firms have claimed to be seeking damages against the company on similar grounds. The
company is alleged to have declared its deals with the Commonwealth Bank, the Fruitbox
company, NA Williams and Fantastic Furniture, which were either subjectd to review, or
cancelled subsequent to such announcements. The exaggerated announcement led the investors
believe that GetSwift has become financially stable and has began to create revenue from
significant clients like Fruitbox company, NA Williams. However, when it was disclosed that
the contracts did not survive the trial period, the market capitalization declined to less than half
the amount, causing violation of its market obligations.
The company had been subjected to trading halt since 22 January and has requested to
release its suspension. It has been reported that apart from its non-disclosure about the deals or

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contracts, the company released revenue forecasts from a deal it declared with Commonwealth
Bank of Australia, in advance. The company was hit by more than fifty percent on Monday after
it resumed its operations post the trading halt that resulted from the ASX enquiries on the breach
of its continuous disclosure obligations several times.
However, GetSwift which is run by Bane Hunter, the Executive Chairperson and
former AFL player and entrepreneur Joel McDonald stated that the investigation carried out by
ASX has found that the company has not breached its continuous disclosure obligations and that
the company has been working with PricewaterhouseCoopers (PwC) to review the compliance
procedures of the company. The company has further been subjected to ASX query due to its
delay in submission of notice pertaining to the change in the interest of the director while the
corporate giant faces trading halt to resolve issues regarding its compliance and disclosure
obligations with listing rules.
In the contemporary era, the business organizations are required to maintain good
corporate governance framework to ensure that the business operations are being carried out in
the best interests of the company, shareholders and its stakeholders including the community. In
Australia, the ASX Corporate Governance Council Principles and Recommendations stipulates
that a good corporate governance stimulates the confidence of the investors that is fundamental
to the ability of the corporate entities that are listed on the ASX to compete for capital (ArAs
2016). The issue that has been raised in the article is about the failure of the organization to make
disclosure of material information about the company, which misled as well as deceived the
investors, resulting in a trading halt of the company. Such corporate governance failure has not
only resulted in financial and reputational loss but has reduced the confidence and trust of the
investors from the company as well.