Accountants, liquidators and company directors should be aware of ASIC’s new corporate governance resource.  The new website resource aims to assist Australian company directors and officers in adopting good practice of corporate governance.

Corporate governance is the framework of the systems, rules and processes that control and authorise actions of corporations. Good corporate governance is crucial in maintaining good performance and good record keeping for a company. Directors and officers of the company have a responsibility to ensure that there is adequate corporate governance in place.  When disputes arise, good corporate governance and records are essential in managing the costs associated with litigation.

In launching the new website ASIC Commissioner John Price said, ‘Good corporate governance is the foundation upon which investor trust and confidence in companies is built. It is only through good governance that fair, orderly, transparent and efficient markets can be achieved’.

Each corporate entity will need to adopt difference governance practices to suit their own needs. The ASIC corporate governance resource website provides summaries and guidance on specific topics including:

• Managing conflicts
• General meetings and shareholder agreement
• Director oversight of financials and audit
• Emerging risk management
• Handling corporate information
• Executive remuneration
• Corporate Culture
• Corporate actions involving share capital
• Directors as gatekeepers
• Procedural guidance
• General articles on corporate governance

These are a useful starting point for any company to ensure their corporate governance is up to scratch.

For more information on corporate governance please contact us.