Corporate Governance Report: ACC03043 - Corporate Collapses Analysis

This report addresses two key aspects of corporate governance. The first part examines early corporate collapses in Australia, specifically focusing on the cases of Alan Bond, Laurie Connell (Rothwells), and the Girvan Corporation. It analyzes the underlying reasons for these failures and assesses whether current corporate governance codes could have prevented these outcomes. The second part explores the corporate governance implications stemming from the global financial crisis, as discussed in the textbook. The report investigates the failures of financial institutions, the impact on the market, and potential regulatory changes to prevent future crises. The analysis incorporates relevant literature and provides a comprehensive overview of corporate governance issues.

Running head: MBA: CORPORATE GOVERNENCE
MBA: corporate governance
Name of the student
Name of the university
Authors note

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Table of Contents
Answer to question 1......................................................................................................2
Answer to question 2:.....................................................................................................3
References:.....................................................................................................................5

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Answer to question 1
In the late 1980’s despite of having a good quality and market capture Australia had
faced a tough situation owing to a massive degradation in the economics and it had made the
Australian companies saw a big collapse in their business and the major responsible factor on
that case was stakeholders (Samra, 2016.). The short run entities used profit performance
model to privatise the concerns. For example concerns like railway, coal, electricity and gas
had been made privatized. On the other hand the Anglo American companies had been
providing lucrative incentives to the employees for strong board level performance. However
the hostile bids had often financed to high risk high end junk bond. However thee scenario
had changed when the major companies of united states and the names of Ivan Boesky,
Michael Levine and Michael Milken went down to the corporate governance with junk faced
financing areas (Tricker, 2000).. However in Australia names of Alan bond, Laurie Cornell
had faced the same situation. Nomura securities having link up with the payment of
international clients had also faced the same problem which had let the chairman of the
company to resign (Eberlein, et al.,2014).
Reasons for failure:
There had been ample number of reasons which had because Roth wells limited to fail
and collapsing. The reasons are as follows –
1. Not performing the duties properly: it is seen from the reports published in the article
stating that since the beginning of the business, the company had not performed well in
the market and had not fulfilled all the duties appropriately. However they were
dominated by new entrepreneur and start-up companies that had forced them to stop the
business.

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2. Non repayment of loans: it is seen from the report that the company had taken big
amount of loans for business purpose which they had failed to repay. On the other hand
the company auditors had refused to sign the 1988 contracts which had let the company to
downfall.
Current corporate governmence codes: the corporate governance codes in Australia is
having the following features however it is expected that the Australian companies could
follow all the key features. These are-
1. Extensive regulations and personal liability of the directors.
2. A move towards the principal based government systems.
3. Influential large institutional investors who had a very strong investment
infrastructure.
Thus it can be concluded that the company could look to involve in the principle
based government rules and regulations as well as influencing the company investors to
increase productivity abiding by all the rules and regulations to ensure market valuation
and strong investment potential (Ambec et al.,2013).
Answer to question 2:
There has been a sharp downfall towards the substantial growth of the company. Hence
the house parties had sharp fall and mortgage of loans had been undervalued. Thus the loans
provided to most of the people had faced credit risk in the financial market which had caused
degradation in the market price of the company. Thus owing to that many of the countries
had faced problems related to trading, personal borrowing and high inflation over the share
prices of houses in credit (Yermack, 2017). The major problems addressed in that way in the
imbalance I loan amount granted. Thus the banks had exposed to more risks and debt
circulation occurred. Thus the central banks had made some special arrangement to meet the

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company liabilities by providing money. Therefore here are some rules and regulations need
to provide the below changes –
 Annual re-election of the chairman of the whole board.
 Adding to the new principals of leadership of the chairmen, as well as looking to
the company roles and responsibilities and independence of non-executive
directors and the time commitment.
 Evaluating the board process over the last three years as well as analysing the
same into the process (TRICKER, 2015).
 Improving the regular personal performance and review the company
developmental issues
 Performance related process are needed to be evaluated as per the long term
interest rates and risk averseness policy (Muller, 2017.).
Reporting the company business model and implementing the overall financial
strategy of the company. In respect to this it is seen that the government could take $US 700
billion of quality stakes to the banks and the same had been implemented in three different
nationalised banks namely royal bank of Scotland, HBOS, and Lloyd TSB. Thus some banks
had lost jobs and the government had the power to provide mortgage, Iceland and the banks
and stock exchanges could be currently untraceable and same could be raised to deflate the
financial crisis over the international monitory fund for help. Thus the global financial crisis
some issues which had been discussed above previously (Tricker & Tricker 2014). The major
banks of the country had faced many financial resonance in October,2008 where the stock
exchanges had faced some major cash related issues and budding entrepreneurs had grab the
opportunities way beyond the economic portal (Hansmann and Kraakman 2017). Due to the
failure to most of the organisations who have experienced liquidity problems had met by
Hong Kongs financial authority. Apart from this all the share market in Iceland had closed

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down since the demand for depositors cash could not be made (Tricker ,2012).. Therefore it is
also seen that a country like Iceland who were heavily relied on fishing and tourism had
moved towards entrepreneurships and thus tried to improve financial condition by improving
investments.

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References:
Ambec, S., Cohen, M.A., Elgie, S. and Lanoie, P., 2013. The Porter hypothesis at 20: can
environmental regulation enhance innovation and competitiveness?. Review of
environmental economics and policy, 7(1), pp.2-22.
Eberlein, B., Abbott, K.W., Black, J., Meidinger, E. and Wood, S., 2014. Transnational
business governance interactions: Conceptualization and framework for
analysis. Regulation & Governance, 8(1), pp.1-21.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law.
In Corporate Governance (pp. 49-78). Gower.
Muller, R., 2017. Project governance. Routledge.
Samra, E., 2016. Corporate governance in Islamic financial institutions.
Yermack, D., 2017. Corporate governance and blockchains. Review of Finance, 21(1),
pp.7-31.
TRICKER, B. (2015). Corporate Governance: Principles, Policies and Practices, 3rd edn,
Oxford University Press, UK. ISBN
Tricker, B. (2012). Studyguide for "Corporate governance. [Erscheinungsort nicht
ermittelbar]: CRAM 101.
Tricker, R., & Tricker, G. (2014). Business ethics. London: Routledge.
Tricker, B. (2000). Corporate governance. Aldershot: Dartmouth.

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