Corporate Governance and Remuneration Policies: A Case Study of Telstra Company

BUSINESS AND CORPORATION LAW
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Corporate governance refers as a framework in which the operations of the organization are
managed, directed and controlled by the company. Corporate governance maintain the balance
between the objective of the organization along with taking care of the persons who are impacted
by the activities of the organization such as shareholders, stakeholders, people, environment,
community etc. (Stout,and Blair, 2017). It is the responsibility of the board of directors to
manage the operations of the company in a manner which is the best interest of the company
along with the other stakeholders.
The corporation act of the Australia defines the statutory duties of the directors with respect to
the corporate governance financial and reporting obligation audit. The essential aspects of the
corporate governance is the accountability and the transparency (McCahery, Sautner, and
Starks, 2016). With this regards, the rules of the act allow the directors to determine the
remuneration policies for the directors. However in the annual general meeting the board of
directors of the company has to disclose all the remuneration policies, nature and the amount
provided to the key executives, it assist in the transparency system of the company (Armstrong,
& et.al 2015). Further the shareholders also get to know and relate the performance of the
company and the payment to the board of directors and the key personnel of the company.
Apart from the above the remuneration report must be approved by the shareholders of the
company. Further if the company receives no vote of 25% or more on the remuneration report
then the first strike happen. After this, in the next remuneration report the company must disclose
whether the concern of the shareholders has been considered in the report. Moreover after the
first strike in case in the subsequent year on the remuneration report company receives no vote of
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