PACC6004: Accounting Analysis of Myer Ltd Corporate Governance Report

This report analyzes the corporate governance and sustainability practices of Myer Holdings Ltd, Australia's largest department store. It examines the company's response to the Corporate Governance Principles and Recommendations (Fourth Edition), focusing on key changes and their impact. The report also assesses Myer's current corporate governance policies, identifying areas for enhancement and alignment with the new guidelines. Furthermore, it explores Myer's sustainability initiatives and considers the selection of a foreign country (United Kingdom) for expansion based on sustainability requirements, particularly waste management. The analysis covers the delineation of roles, board structure, and the importance of sustainability in business operations, providing a comprehensive overview of Myer's corporate strategy and its alignment with contemporary governance standards.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Changes in Corporate Governance Principles and Recommendations........................................2
Analysis of Corporate Governance Policies of Myer Ltd...........................................................4
Selection of a Country.................................................................................................................5
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................7

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Introduction
The main purpose of this assessment is to analyze the business of Myer Holdings Ltd
which is considered to be one of the largest departmental store operating in Australia. The
assessment considers the corporate social responsibility aspect of the business. In addition to this
the assessment would also be recognizing the key changes which were made to the fourth edition
of Corporate Governance Principles and Recommendations. The changes which are identified
would then be analysed with respect to Myers Holding Ltd and how the same can bring about
changes in corporate governance setting of the business (Khan, Muttakin & Siddiqui, 2013).
Moreover, it is also to be noted that the assessment would be identifying a foreign country which
would be most suitable for expanding the operations of the business. The choice of the foreign
country where the company would be considering expansion of business would be considered on
the basis of sustainability requirements of the business.
Discussion
Changes in Corporate Governance Principles and Recommendations
In order to cope up with the recent market conditions, certain changes have been made in
the corporate governance framework in order to ensure that proper governance strategies are
followed by businesses (Tricker, 2015). There are 8 elements which are included in corporate
governance framework out of which changes in central principle and certain recommendations
are suggested for all the elements. The important recommendation which is suggested in the
framework are listed below:
Lay Solid Foundation for Management and Oversight

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The central principles on the basis of which amendment are suggested states that the
company should clearly delineate the respective roles and responsibilities of its board and
management so that appropriate governance can be maintained. In addition to this, the company
should also employ proper supervision. It has been an issue with most of the companies that the
business board charter does not clearly assigns the duties and responsibilities of the board of
directors (Asx.com.au., 2019). One of the recommendation which is made includes that the
management of the company needs to make proper check on the background before appointing a
director or senior executive. The company secretary should be accountable to the board of
directors and should be reporting to the board. Therefore, it can be said that the management of a
company needs to adhere to all recommendations in order to delineate the respective roles and
responsibilities of its board and management (Fung, 2014). This would make the corporate
governance framework which is followed by businesses more appropriate.
Structure the Board to add effective value
The central principle which is followed under this element states that the board of
directors should have appropriate knowledge and should consist of right number of members
who have experience in the industry and can therefore take effective decisions and discharge
their duties in an efficient manner (Juiz, Guerrero & Lera, 2014). This principle is not effectively
followed in most of the businesses which is the reason that recommendation is provided stating
that there should be a nomination committee which has a majority of independent directors so
that the decisions regarding nomination to board or other senior position can be done in an
effective manner. The business needs to follow a skill matrix so that skills of the directors are
effectively identified by the business (Duc & Thuy, 2013). The decision regarding the selection

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of the members should also be done by independent directors and the chairmen should also be an
independent director of the business.
Analysis of Corporate Governance Policies of Myer Ltd
The corporate governance policies of Myer ltd can be effectively identified and analyzed
from the corporate governance report which is formulated by the management of the company.
As per the corporate governance report which is prepared by the business shows that the roles
and responsibilities of the business are appropriately presented in the governance report which
shows that the management properly defines the scope of responsibilities which are to be
handled by the directors of the business (Asx.com.au., 2019). All the important decisions which
is related to the business are taken by the board of directors.
However, it is to be noted that there is no proper supervision plan for in plan to oversee
the workings of the board of directors of the business (Lebedeva et al., 2016). The management
of Myer ltd needs to formulate a proper supervision strategy so that the workings of the board of
directors can be supervised which would help in enhancing the efficiency in decision making
process and also reducing conflicts in the business.
On the other hand, the second principle states that the board of director needs to be
competent and should have necessary skills. The recommendation required businesses to have a
nomination committee and the corporate governance report shows that the business of Myers ltd
have a nomination committee. In addition to this, chairman of such nomination committee is one
of the independent non-executive directors and therefore the same complies with the
recommendation suggested. As per the corporate governance statement, the board ensures that
the non-executive directors who are independent can be a part of the decision-making process of

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the business (Jizi et al., 2014). Therefore, the analysis of the corporate governance reports of
Myers ltd shows that the management of the company needs to make minor changes in the
policies which is followed by the business in order to comply with the changes which are
brought about in the new amendment of Corporate Governance Principles and Recommendations
(the Fourth Edition).
Selection of a Country
On the basis of the discussion which is made on the corporate social responsibilities
which is followed closely by the business is essential in maintain overall level of sustainability in
the business. The idea of sustainability is derived from long term continuance of the business
without jeopardizing the ability of the future generation to meet their own needs. The
management of the company look to move into the market of United Kingdom as the business
opportunities present in the market is appropriate and therefore the same can meet the needs of
the business.
The major sustainability concern which the management of Myer ltd is proper waste
management which needs to be done in UK. This policy is also related to protection of the
environment and the same forms a part of the sustainable practices which can be followed by the
management of Myers ltd. Another issue which the management of the company needs to
consider is the cost reduction practices which can be brought down by following sustainability
practices in the business. The management of the company needs to follow the suggested
measures so that the business can effectively operate in the new market and also develop a
competitive advantage in the market.

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Conclusion
The above discussion effectively shows the business of Myers Holding Plc and also the
corporate governance practices which is followed by the business. The discussion effectively
portrays the amendments which are brought about in Corporate Governance Principles and
Recommendations (the Fourth Edition) and analyse how the same would be affecting different
businesses. The discussion also shows the corporate governance practices which is currently
followed by the business of Myers Ltd and how the same can be further amended so that more
improvement can be brought about in the corporate structure of the business.

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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
Duc, V. H., & Thuy, P. B. G. (2013). Corporate governance and firm’s performance: empirical
evidence from Vietnam. Journal of Economic Development, (JED, No. 218), 62-77.
Fung, B. (2014). The demand and need for transparency and disclosure in corporate
governance. Universal Journal of Management, 2(2), 72-80.
Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate governance and corporate
social responsibility disclosure: Evidence from the US banking sector. Journal of
Business Ethics, 125(4), 601-615.
Juiz, C., Guerrero, C., & Lera, I. (2014). Implementing good governance principles for the public
sector in information technology governance frameworks. Open Journal of
Accounting, 3(01), 9.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social
responsibility disclosures: Evidence from an emerging economy. Journal of business
ethics, 114(2), 207-223.

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Lebedeva, T. E., Akhmetshin, E. M., Dzagoyeva, M. R., Kobersy, I. S., & Ikoev, S. K. (2016).
Corporate governance issues and control in conditions of unstable capital
risk. International Journal of Economics and Financial Issues, 6(1S), 25-32.
Tricker, B. (2015). Corporate governance: Principles, policies, and practices. Oxford University
Press, USA.