JAMES HARDIE. Corporate Governance. [Date]. [Company na
Added on - 23 Sep 2019
JAMES HARDIECorporate Governance[DATE][COMPANY NAME][Company address]
ANSWER 1Stakeholder1Group of James HardieCorporate governance responsibilitiesowedSupervisory and joint board of directors.This board consists only non-executivedirectors. The directors are appointed by theshareholders during the meeting of AnnualGeneral. The members of the supervisoryboard also have a right to vote for theselection of another member of thesupervisory board. The corporate governance2responsibilities of this group of stakeholdersare as follows-(Peacock, 2016)1. They have to approve the annual budgetand the strategic plan which is being made bythe managing board of directors.2. They have to approve the annual financialreports and accounts of James Hardie.3. They have to overlook the plans andpolicies which are being initiated by themanaging board of directors.4. They have to approve the decisions whichare made in order to issue the shares.5. They are responsible for selecting andremoving the CEO and other members ofmanaging a board of directors.Managing board of directorsThis board consists only executive members,and they are appointed by the shareholders atAnnual General Meeting. The corporategovernance responsibilities of this group ofstakeholders are as follows-1. They are responsible for allocating theorganization's finances, operations, andgeneral affairs.2. They have a responsibility to develop astrategic plan, annual financial budgets,operational activities and then implementingthose strategies in order to reach the JamesHardie’s goal.1Stakeholder: a person who is concerned with the business related activities.2Corporate governance: rules and regulations which are to be followed by the company.
3. They have the responsibility to implementthe strategic plan of James Hardie.4. They have a responsibility to make annualand quarterly reports, management reports,etc.5. They have to handle the risk which is beinginvolved in the activities, and they have toensure the compliance with legislation.6. They have to give a report of activities tothe supervisory board of directors and auditcommittee of James Hardie.The former managing board of director andjoint board of director.The corporate governance responsibilities ofthis group of stakeholders are as follows-1. The general affairs of James Hardie arebeing monitored by this group ofstakeholders.2. They are responsible for giving andcanceling the issue of shares.3. They are responsible to take the decisionwhich is important to change to the identity ofJames Hardie.4. They are responsible for preservingexternal policies.3EmployeesEmployees are the main stakeholders of thecompany as they are the only one who areresponsible for running the business. Theyfollow the instructions given by theirmanagement in order to reach the goals. Theyreport the management about their work anddiscuss their issues as well.(Clarke, Dean, &Oliver, 1997)CustomersCustomers are also the main stakeholders ofthe company as they are the clients4for whomthe company runs in order to satisfy them.The customers tell their demands to thecompanies in order to satisfy their personalneeds and after fulfilling their needs, they aresupposed to give the feedback so that thecompany can improve accordingly.3External policies: strategies made by the state in order to protect the state and achieve national goals.4Clients: a person who is getting and using the desired services of a company.
ANSWER 2ASX PrincipleKey corporate governanceissuecorresponding to that ASX PrincipleThe corporate governance council ofAustralian Stock Exchanges on March 31,2007, implemented the principles and bestpractice recommendations on corporategovernance. The companies which are listedin Australian Stock Exchange are supposed toreport the authority that they will follow theprinciples and recommendations or not, and ifthey do not follow then, they have to give areason. And this rule was implemented fromthe financial year- January 1, 2007.(Comino,2016)The key corporate governance issue of JamesHardie in correspondence to that of AustralianStock Exchange principle andrecommendation is-(Coutts, 2005)The financial5year of James Hardie ended onMarch 31, 2007. And James Hardies wassupposed to report according to the principlesand best practice recommendations oncorporate governance of Australian StockExchanges. In that report, James Hardie alsocommented that to what extent they followedthe principles and best practicerecommendations of Australian StockExchange for the financial year March 31,2007. And it also showed all steps andprocedures which were being followed inorder to complete the best practicerecommendations and principles with respectto Australian Stock Exchange. James Hardieadhered most of the Australian StockExchange principles and recommendations.The corporate governance issues were-1. James Hardie didn’t disclose the existentpractices earlier.2. The employees complained that they werehaving health issues, but it was not clear thatthe issues were caused by the usage ofasbestos or not and the James Hardie didn'tpay any attention towards it.3. In 1938, Ministry of health report camewhich stated that asbestos is the only reasonbehind the health issues of the employees andthe nearby mining companies but still JamesHardie didn’t take any action.4. Employees claimed the compensation,5Financial year: it is a time period which company uses for financial statements.