Financial Accounting Report: Myer Ltd Corporate Governance Analysis

This financial accounting report analyzes the corporate governance practices of Myer Holdings Ltd, Australia's largest department store. It examines the implications of the Corporate Governance Council's Corporate Governance Principles and Recommendations (Fourth Edition) released in 2019, focusing on key changes and recommendations. The report assesses Myer's adherence to these principles, evaluating its board structure, management oversight, and disclosure practices. Furthermore, it explores potential expansion strategies, specifically recommending the United Kingdom as a suitable market, while emphasizing the importance of sustainable business practices and corporate social responsibility. The analysis highlights areas for improvement in Myer's corporate governance framework, particularly in the area of employee supervision, and underscores the significance of aligning business decisions with sustainable and ethical considerations. The report concludes by emphasizing the importance of sound corporate governance and sustainable practices for Myer's long-term success.

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Financial Accounting
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Amendments in Corporate Governance Principles and Recommendations................................2
Analysis of Corporate Governance Policies of Myer Ltd...........................................................4
Decision Regarding Expanding the Operations of the Business.................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

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Introduction
The main purpose of the assessment is to analyze the business of Myers Holdings Ltd in
order to ensure that the company follows effective corporate governance framework and also has
a sustainable approach for conducting the operations of the business. Myers Holding ltd is
considered to be one of the largest departmental stores which is operating in Australia and has a
widespread store business across the country. The assessment deals with the changes and
revisions which are brought about by Corporate Governance Principles and Recommendations
(Fourth edition). In addition to this, the principle changes are also followed by appropriate
recommendation to support so that businesses can improve the corporate governance framework
(Siagian, Siregar & Rahadian, 2013). Applicability of the revisions made by Corporate
Governance Principles and Recommendations (Fourth edition) would be assessed in relation to
Myers Holding ltd. In addition to this, the assessment would also be identifing a foreign nation
where the business can suitably expand while considering sustainable practices.
Discussion
Amendments in Corporate Governance Principles and Recommendations
The business environment is changing and there are more instances of mismanagement,
fraud taking place in businesses. Therefore, it is an essential requirement that sound corporate
governance principles are formulated which can reverse such situations and safeguard the
interest of the business as well as the investors (Idowu et al., 2013). A general corporate
governance report covers eight elements for which changes have been introduced along with
recommendation in each of the elements. The important changes and recommendations which
are made are listed and explained below:

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Lay Solid Foundation for Management and Oversight
The main changes which have been suggested is to appropriately clearly delineate the
respective roles and responsibilities of its board and management so that overall efficiency and
simplicity can be maintained in the business (Said Mokhtar & Mellett, 2013). It is also suggested
that proper supervision is also required to check whether the established governance and
regulations are being followed by the employees and senior management or not. In most of the
businesses, a common issue which is noticed is that the responsibilities of the senior employees
and board members are not clear and this can have an impact on the operational process of the
business (Asx.com.au., 2019). The recommendation which is provided under such a principle is
listed below in point form:
 The management of the company needs to conduct a proper check on the background of
the employee before appointing him a post of senior executive or even a director.
 The company secretary should be accountable and should directly report to the board of
directors of the business.
 The board charter should make it clear the role and responsibilities of the board of
directors of the business so that proper governance can be maintained by them.
 The company should store written representation from the board directors to ensure that
they effectively understand their responsibilities.
Structure the Board to add effective value
One of the main principle which is followed under corporate governance policies which
is formulated by businesses. The principle states that the board of directors needs to have proper
knowledge regarding the nature of the business and the same should assist the directors in

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discharging their duties in an effective manner. The recommendations which can be suggested in
this aspect are listed below:
 The business should have an established nomination committee which should have a
majority of the members who are independent directors so that appropriate decisions can
be taken.
 The business should maintain a skill matrix in order to identify the current level of skills
which the directors of the business possess.
 The nomination committee should be headed by an independent director and the same
should be chairmen of the committee.
Analysis of Corporate Governance Policies of Myer Ltd
The corporate governance policies which is followed by the management of Myer Ltd are
effectively presented in the corporate governance statement which is prepared by the business.
The corporate governance report states that the roles of the directors are clearly stated in the
board charter and this shows that the management clearly presents the role and responsibilities of
the board of directors so that appropriate steps can be taken towards proper governance of the
business (Krechovská & Procházková, 2014). In addition to this, the corporate governance report
further states that all important decisions are taken by the board.
The only deficiencies which can be identified from the corporate governance report is
that the management of the company needs to implement proper supervision so as to ensure that
the employee effectively follows such policies (Lys, Naughton & Wang, 2015). Such strategies
are also useful in decision making process. Another major principle which the management
needs to ensure is that a proper level of skill is maintained which also means that competent

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person should be admitted to the board of directors of the business (Ioannou & Serafeim, 2017).
The corporate governance report shows that the business already has a nomination committee
established and the chairmen of the committee is an independent director of the business. This
ensures that proper decisions can be taken by the business. This also complies with the
suggestion which is made in the amendment made in Corporate Governance Principles and
Recommendations (Fourth edition).
Therefore, after considering the corporate governance report of Myer Ltd, it cam be
clearly said that the management has effectively disclosed all the eight principles of a corporate
governance statement (Sharif & Rashid, 2014). This also shows that the management is efficient
in maintaining and implementing the corporate governance policies of the business. In addition
to this, the business has also provided proper disclosures for the corporate governance policies of
the business. However, the management needs to make improvements in supervising the policies
which is already introduced by the management of Myers ltd.
Decision Regarding Expanding the Operations of the Business
The business of Myers Holding ltd is considered to be one of the largest departmental
store operating in Australia. The management of the company is planning to expand the
operations of the business in foreign country. As per the market conditions, United Kingdom
would be the best option for the business to expand the operations of the business (Asx.com.au.,
2019). The management of Myers Ltd is dedicated towards the corporate social responsibilities
of the business and therefore the business closely follows sustainable growth approach in order
to expand the operations of the business.

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The management of Myers ltd is dedicated in managing the wastes of the business and
ensure that waste generation is reduced significantly. This would also mean that the costs of the
business would automatically reduce if unnecessary waste is controlled by the business. In
addition to this, the business has the record to employing and developing employee which means
that the business contributes to the need of the society. The business also considers the
environmental concerns and makes sure that no activity is carried out by the business which can
affect the environment. These practices protect the environment and also shows the commitment
of the management towards proper sustainable practices (Chan, Watson & Woodliff, 2014).
Therefore, the policies which are followed by the management are appropriate and the
same can help the management of the company to operate effectively in the market. These
policies of the business would also help the management to effectively face competition in the
new market and also establish a name for itself in the market.
Conclusion
The above discussion effectively shows that the management of Myers ltd has formulated
proper corporate governance strategies as shown in the corporate governance report of the
business. However, certain amendments also need to be made in order to further strengthen the
corporate governance policies of the business. The assessment above shows the changes which
are brought about in Corporate Governance Principles and Recommendations (the Fourth
Edition) along with recommendations for the companies regarding each of the principles covered
in corporate governance report. The above discussion points out that the business can expand the
operations in UK as the competitive pressure and policies are quite similar to Australia. The
market is competitive, however with proper strategies the business can survive in the Market.

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The business intends to follow sustainable approach in managing the operations and activities in
the new country.
Reference
Asx.com.au. (2019). Retrieved 9 April 2019, from
https://www.asx.com.au/asxpdf/20181025/pdf/43zlm1n86nl6th.pdf
Asx.com.au. (2019). Retrieved 9 April 2019, from
https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-
fourth-edn.pdf
Chan, M. C., Watson, J., & Woodliff, D. (2014). Corporate governance quality and CSR
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Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability
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Lys, T., Naughton, J. P., & Wang, C. (2015). Signaling through corporate accountability
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Said Mokhtar, E., & Mellett, H. (2013). Competition, corporate governance, ownership structure
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