ASX Corporate Governance Principles

This assignment delves into the Australian Securities Exchange (ASX) Corporate Governance Principles. It examines how these principles guide responsible and ethical business practices for both listed and non-listed companies. The analysis covers the application of ASX's Code of Conduct and policies on fraud control, anti-bribery, and whistleblowing protection. The assignment also discusses the relevance of corporate governance principles for long-term organizational success and building a positive reputation.

Running head: CORPORATE LAW
Corporate Law
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Corporate Governance and its importance..................................................................................2
The structure and purpose of corporate governance principles and recommendation provided
by ASX........................................................................................................................................3
ASX “if not, why not” approach..................................................................................................4
The implications of governance principles..................................................................................5
History and the evolution of the Physics governance principles and Recommendation.............5
The connection between listing rules and ASX principles..........................................................6
Making disclosures regarding implementation of corporate governance principles...................7
Corporate Social Responsibilities................................................................................................7
Application of the ASX principle on the non-listed companies..................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
The ASX Corporate Governance Council Principles and recommendation was first
incorporated in the year of 2003. Lately the rewritten edition was published in 2007 and the new
recommendation was incorporated their diversity of the remuneration committee in 2010. The
council was convened in 2002 for controlling the organization, shareholders, valuable insights,
industry groups and other expertise of the shareholders.
Discussion
Corporate Governance and its importance
Corporate Governance is one of the important systems of the companies for controlling and
directing according to the governance of the Board of directors. Under the Corporate
Governance, it is the duty of the shareholders that they will appoint the auditors and directors of
the company to satisfy about the government structures. Under these strategies, it provides the
responsibilities to the board to set the leadership and helps to supervise the management of the
business. It helps to form the framework which controls the following:
 The contribution of the individual directors of the organization
 The effects by the board and activities by the boards
 The actual framework where the governance is applicable
 The strength of the relationship where the company can make the business with their
stakeholders.

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It is the only source of the company where it works with regulatory body of the organization.
The Australian Securities & Investments Commission regulated the Corporate Governance for
the considered several issues which are:
 Managing the conflicts under the organization
 Engagement by the shareholders
 Emergency risk management
 Executive remuneration
 Culture of the organization
 The actions by the corporation which is involve with the share capital.
The structure and purpose of corporate governance principles and recommendation
provided by ASX
The purpose is to regulate the corporate Governance practices which are entitled under
ASX for adopting the different government policies and practices which include range of factors,
complexity, size, history and culture of the organization.
According to the structure of the Principles and Recommendation, it manages several
factors which include:
 The structure of the board for added the value is need to corporate under the corporate
governance for formation and disclosure of the respective natures and responsibilities of
the management.
 Works with ethically and take responsibilities helps to set the entity under the
corporation.
 Protect the managements and proceeds with a safeguard entity under the corporation.

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 Timely provided the balanced disclosure which is entitled under the legal entity where
all the matters are concerning with the reasonable material effects.
 Give respect the rights of security holders are helps to gather the appropriate information
and facilities for exercise the rights effectively.
 Identify and control the risk assessment where the listed entity helps to introduce the risk
management structure which works on the effectiveness of the framework.
 Proceeding of the remuneration process with fairness and responsibilities where the listed
entity is paid the director remuneration which is sufficient to retain and attract motivate
high quality senior executives for align their interest.
ASX “if not, why not” approach
The governance practice is chosen under the listed entity for adopting the matter for the
board of directors who will take legal responsibilities for controlling the business with due care
and diligence. The principal and Recommendation helps to consider the particular situations
which is may or may not to adopt it but if it does so it fast give reasonable fats why it has not an
update the recommendation in the if not why not approach. This approach has been applied for
ensuring whether the market receives the appropriate level of information under the entities
governance arrangement. The security holders and other stakeholders of the organization who
are in the investment community has right to have her appropriate position with the board and
the management on governance matters. The security holders can also gather the factors which
provide the information and help to decide on how to process the boat according to the particular
resolution. The investors of the company have also use the same factors where the gathered
information and take decision why or why not they will invest in the entity securities. Therefore

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the ‘if not why not approach’ is one of the fundamental matters to the operation of the principles
and Recommendation.
The implications of governance principles
The principles of the corporate governance are entitled under the ASX listed entities. It is
necessary to identify that weather those principles are established in Australia or anywhere else
where those have been controlled and monitored externally or internally. In the most of the
recommendation it is necessary to modify the applications under the external in managed listed
entities. There is another separate section under the recommendation which was immediately
acts after the recommendations has been expressed up about how it has been managed under the
listed entities. It is also applicable and health to form disclosures in against of recommendations.
The principles and recommendations are specifically reacted and formed for the applications
under ASX listed entities only in other areas it is not applicable. However the principles and
recommendations help to view the contemporary reflects on the appropriate corporate
governance standards where other corporate bodies may find useful to form their own
government’s practices or rules.
History and the evolution of the ASX governance principles and Recommendation
The ASX corporate governance Council was introduced by ASX in August 2012. The
Council has been formed together with different entities like shareholders, business and industry
groups offered individually their insights and perspectives on the governance issues. Later it has
been operated under a charter adopted in November 2012. The council is helped to modify and
issued principal base corporate governance practices listed entities under ASX. The
recommendations are help to promote the confidence of the investors and assist the listed entities
to meet with stakeholders’ expectation according to their relation with the governance. ASX has

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been listed their entities under the listing rule 4.10.3 where the benchmark of the corporate
governance practices is required against the recommendations of the Council. If it has been
found that the recommendations and practices not able to conform to disclose the facts then the
rules will effectively works on the listed entities for adopting The council recruitment practices
without any force. It also helps to provider fixable alternative corporate governance practices
according to the particular circumstances where the board considers the alternatives.
The connection between listing rules and ASX principles
Under the listing roll 4. 10. 3, ASX has been listed there in entity which includes the
annual report of the corporate governance statement. It helps to meet with the requirements
under this rule where statement of the corporate governance helps to disclosure the extent where
the entity must follow the recommendation prepared by the Council during the reporting period.
If it has been found that the entity was not followed the recommendation according to the
governments statement then they can separately identify the recommendation and that time when
it was not followed and state the reasonable factors. It also suggest recommendation to the
Council for adopt alternative recommendations and practices. It is the role where if not why not
requirements are operated for the principles and recommendations. It helps to ensure whether the
market able to receive actual level of disclosure under the entity of the governance practices. it
also specify the date which is current and the balance date of the entity which are approved by
the board itself.ASX also listed their entity with the annual report of completed appendix in 4G
for disclosing suggestion in the recommendation or required under listing rule 4.10.3. It is the
entity of the corporate governance that they may not include their annual report but must provide
a copy of the corporate governance statement to ASX (Asx.com.au 2018).

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Making disclosures regarding implementation of corporate governance principles
The corporate governance recommends and discloses the listing entity which helps to
disclose the documents under the ASX principle. The council has been expected that the listed
entities will take advantages of those opportunities which help to choose for publishing
governance under the Listing Rule 4.10.3. Therefore, it is acceptable of the entities under the
corporation governance which works on the incorporate materials by the references. The council
used to recommends the corporate governance statements which are related with the corporate
governance discloser under the annual report of the organization (Du Plessis, Hargovan &
Harris, 2018). The references are given under the provided materials which are freely available
and the statements are also clearly shows that the interest parties only able to read the statement
or obtain the copies. The council are entitles to the legalistic or pedantic approaches under the
corporate governance. The listed entity always followed the recommendations which are rather
explained the policies and practices under the Corporate Governance. The entity is related with
the recommendation 4.1 of the ASX Corporate Governance Council Principles and
Recommendations. The listed entities must viewed the Corporate Governance having proper and
effective arrangements for communicate for proving securities and other broader investments
through their particular approach to corporate governance (Tricker & Tricker, 2015).
Corporate Social Responsibilities
The Corporate Social Responsibilities helps the board of the Organization for controlling
and monitoring social, governance and Environmental risks which are enterprise the risk
management framework for highlighting on the sustainability of the business of ASX. The
strategies of ASX help to show the initiatives which are designed for addressing the risks and
works for improve the impacts on the society. It helps to control the financial markets and the

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process to conducts the business. The ASX has been participated in the different ESG practices
which include the Carbon Disclosure Project for emission and waste. The FTSE4Good Index
Series which helps to identify the environmental and social criteria. Another project is World
Federation of Exchanges annual survey which works on the exchange of rules under the
corporate governance. The ASX is aimed to form the highly motivated to the team of
professionals which helps to beat the skills and other experience. In the culture, the ASX
management and the board work on the best available skills where they revise and reviewed the
values and behaviors. The ASX’s Code of Conduct and Fraud Control, Anti-Bribery and
Whistleblowers Protection policies helps to conduct on the responsible and ethical decision
making by ASX employers and directors (Tricker & Tricker, 2015).
Application of the ASX principle on the non-listed companies
The ASX principles are not applicable for the non-listed companies. However, the
companies can also use the recommendation of the Corporate Governance for their
organizations. But there are exceptions are available also. It helps the non-listed companies in the
long-term survival, value, success on their decision making process. The exit strategies helps the
organization to lift with a significant burden under for finding an entrepreneur who allow the
company for their successful journeys. It also works on the capital of the unlisted companies
where a significant investment risks for shareholders and financiers can be arises. The ASX
principles and recommendation also helps the companies for building their corporate reputation
in the Global Financial Crisis (Du Plessis, Hargovan & Harris, 2018).

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Conclusion
The Corporate Governance has worked on the several rules of the organization. It helps
to manage the business, employees, shareholders and risk assessments under the corporation.
Under the listing roll 4. 10. 3, ASX has been listed there in entity which includes the annual
report of the corporate governance statement. Under the Corporate Governance, it is the duty of
the shareholders that they will appoint the auditors and directors of the company to satisfy about
the government structures. However, according to the rules and regulation both the listed and
non-listed companies can use the principles for governing the Corporate Governance in the
organization. The ASX’s Code of Conduct and Fraud Control, Anti-Bribery and Whistleblowers
Protection policies helps to conduct on the responsible and ethical decision making by ASX
employers and directors.

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Reference
ArAs, G. (2016). A handbook of corporate governance and social responsibility. CRC Press.
Beekes, W., Brown, P., & Zhang, Q. (2015). Corporate governance and the informativeness of
disclosures in Australia: A re‐examination. Accounting & Finance, 55(4), 931-963.
Beekes, W., Brown, P., & Zhang, Q. (2015). Corporate governance and the informativeness of
disclosures in Australia: A re‐examination. Accounting & Finance, 55(4), 931-963.
Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate
governance. Cambridge University Press.
Liang, D., Lu, C. C., Tsai, C. F., & Shih, G. A. (2016). Financial ratios and corporate governance
indicators in bankruptcy prediction: A comprehensive study. European Journal of
Operational Research, 252(2), 561-572.
Majumder, M. T. H., Akter, A., & Li, X. (2017). Corporate governance and corporate social
disclosures: a meta-analytical review. International Journal of Accounting & Information
Management, 25(4), 434-458.
Sivathaasan, N. (2016). Corporate governance and leverage in Australia: A pitch. Journal of
Accounting and Management Information Systems, 15(4), 819-825.
Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.