What is corporate governance?

September 10th
Corporate governance is a system of rules, practices and procedures that determine how an organisation or business operates. This enables an organisation to make sure it is always meeting its…
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What are the main government agencies or other bodies responsible for making and enforcing corporate governance rules?

August 19th
The chief regulatory bodies which make and enforce governance standards in Australia are the Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX). ASIC is an independent…
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What is the role of the Australian Institute of Company Directors?

August 19th
The Australian Institute of Company Directors (AICD) is a not-for-profit membership organisation for directors. The AICD advocates policies on issues of interest to directors and represents members on these issues.
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Are board directors paid?

August 19th
The Corporations Act states that directors may be paid a fee for directorial services as set out by a member resolution. Directors may also be reimbursed for travelling and other…
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Is there any law or listing requirement that requires the separation of the functions of board chair and CEO?

August 19th
In Australia there are no laws or rules requiring the separation of the positions of board chair and CEO. In smaller companies, commonly the chair or managing director performs the…
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What is the role of the chair of a board?

August 19th
The chair acts as a key link between the board and the organisation’s management through the company CEO. The role of the chair is not defined in the Corporations Act…
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What role do employees play in corporate governance?

August 19th
Generally employees have no legal corporate governance obligations, although those in executive positions or who sit on board committees can play a role in maintaining corporate governance standards.
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What criteria must individuals fulfil to become directors?

August 19th
In order to be a director, a person must be at least 18 years old and must not be disqualified from managing a company under the Corporations Act. Individuals are…
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What board committees are mandatory?

August 19th
The directors of a company can delegate functions to committees; however, it is not mandatory to do so for most companies. The ASX Listing Rules require larger listed companies to…
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Is disclosure of board practices required by law?

August 19th
Listed entities are required by ASX Listing Rules to publish an annual corporate governance statement, which discloses the extent to which the entity has followed the Corporate Governance Council Principles…
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