In March 2014, the ASX Corporate Governance Council issued the third edition of Corporate Governances Principles and Recommendations, outlining good practice for Australian boards and corporations. The recommendations took effect on July 1 2014, however with no compulsory requirement to adhere to them, how seriously are corporations taking the guidance?
This report, ASX Corporate Governance Council: Adoption of 3rd Edition Corporate Governance Principles and Recommendations, analyses around 600 Australian entities to see how they have approached the recommendations in the first full year of reporting since released. The findings are based on the company’s financial disclosure reports for financial years ended between 1 January 2015 and 31 December 2015.
Recommendations made by the ASX in 2014 covered the role of the Board, along with its responsibilities and composition, shareholder communications, continuous disclosure, risk management and economic, environmental and social sustainability risks.
This report details the adoption rates of each recommendation, providing a benchmark for corporations to see how they are performing against others in these key areas. It also looks at the recommendations they haven’t taken seriously – and why.