Corporate Governance Principles and Recommendations Report

This report examines the ASX Corporate Governance principles and recommendations, focusing on their implications for listed companies. The report begins with an executive summary and table of contents, followed by an introduction that outlines the background, scope, and main points. The main body delves into the eight key principles, including laying solid foundations for management, structuring the board effectively, fostering a culture of ethical behavior, safeguarding corporate reports, ensuring timely and balanced disclosure, respecting security holder rights, recognizing and managing risk, and providing fair remuneration. Each principle is explained in detail, highlighting its importance and impact. The report concludes with a list of references, providing sources for further study. The assignment aims to enhance critical thinking skills by researching and evaluating the ASX Corporate Governance principles and their implications for auditors.

Running head: CORPORATE GOVERNANCE PRINCIPLES AND
RECOMMENDATIONS
CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
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Author Note

1CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
Executive Summery

2CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
Table of Contents
Requirement 1: -.........................................................................................................................3
ASX Corporate Governance principles and recommendations.............................................3
References..................................................................................................................................5

3CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
Requirement 1: -
ASX Corporate Governance principles and recommendations
The followings are the eight ASX Corporate principle and recommendations: -
 Lay solid foundations for management and oversight: - The first principle and
recommendation of ASX Corporate Governance states that those entities which are
listed in the ASX should clearly demonstrate the roles as well as responsibilities of its
board including the management of the firm (Asx 2019). Further, it suggests the firm
to timely review the performance of board and management.
 Effectively structure its board and add value on it: - The second principle and
recommendation of ASX Corporate Governance say the every listed firm of ASX
need to structure its board effectively as they have proper size including skills and
commitment. They must have knowledge about the firm’s operation and the industry
in which firm is operating. So, they can add can add some value in the growth of firm.
 Culture of acting lawfully, ethically and responsibly: - Third principle of it
recommends that the every firm should have culture as well as they implement such
culture across the organisation of operating their business ethically, lawfully as well
as responsibly (Shimeld, Williams and Shimeld 2017).
 Safeguard the integrity of corporate reports: - The fourth principle of ASX
Corporate Governance suggests that every listed company need to have an effective
procedure to test and ensure the integrity of the corporate reports those are published
by the firm.
 Make timely and balanced disclosure: - Fifth principle of it ensures that the every
company which is listing in the ASX need to make timey as well as balanced

4CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
disclosures of all the events and matters of the firm that might have or expected to
have a material impact on its securities price or value (Maxwell 2019).
 Respect the right of security holders: - The sixth principle of Corporate Governance
states that every ASX listed companies needs to provide relevant information to the
security holder and also permit them to perform their rights fully.
 Recognise and manage risk: - The seventh principle of the ASX Corporate
Governance suggests that every company that is listed on the ASX list should have an
proper framework for identifying and solving the risks associated with the firm (Lama
and Anderson 2015). Further, firm also needs to review the effectiveness of this
framework timely.
 Remunerate fairly and responsibly: - While, the last and the eighth principle of the
ASX Corporate Governance recommends that every list company of Australia need to
provide appropriate and sufficient remunerations to their directors and executive to
have as well as keep high quality directors and executive within the firm (Asx 2019).
This attractive remuneration policy of the firm for the directors and executive not only
helps the firm to keep them engage with them but also motivate them align their
interest in creating the value for the security holders including the value of the firm
and assertion of the business risk associated with the firm.

5CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
References
Asx 2019. [online] Asx.com.au. Available at: https://www.asx.com.au/documents/asx-
compliance/cgc-principles-and-recommendations-fourth-edn.pdf [Accessed 24 Sep. 2019].
Lama, T. and Anderson, W.W., 2015. Company characteristics and compliance with ASX
corporate governance principles. Pacific Accounting Review, 27(3), pp.373-392.
Maxwell, C., 2019. Governance institute guidance on the corporate governance principles
and recommendations. Governance Directions, 71(2), p.86.
Shimeld, S., Williams, B. and Shimeld, J., 2017. Diversity ASX corporate governance
recommendations: a step towards change?. Sustainability Accounting, Management and
Policy Journal, 8(3), pp.335-357.