Australia - Corporate Governance(Australia Muhammad Fahim...

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Corporate Governance (Australia) Muhammad Fahim Nasir Ahmed Adnan Afridi NoorUllah Muhammad Kashif Afridi
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HISTORY
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History Contemporary corporate governance started in 1992 with the Cadbury report in the UK Cadbury was the result of several high profile company collapses is concerned primarily with protecting weak and widely dispersed shareholders against self-interested Directors and managers In Australia it began with the Australia's Bosch Report (1995) followed the collapse of Rothwells, Elders, Bond Corporation, Tricontinental Pyramid and Quintex. That time in 1992 there was no difference between executive and non executive director
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HISTORY Australia followed a parallel path with the CLERP9 reforms to the Corporations Act (2001) following the collapse of HIH and One- Tel. However, reforms have not been uniform and the resulting regulatory landscape is considered by the Australian Institute of Company Directors (AICD) to be one of the most complex in the world. The they followed the ASX guidelines for listed companies, the generic Australian standard AS8000 for all companies, and applied industry guidelines as well.
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Governance responses to corporate disasters Corporate Disaster Response Main Details Maxwell (1991), BCC1 (1991), Polly Peck (1991) Cadbury (1992) Directors responsibilities include safeguarding the assets of the company and preventing and detecting fraud and other irregularities Rothwells (1986), Elders (1986), Bond (1987), Tricontinental (1989), Pyramid Building Society(1990), Quintex (1990) State Bank of VIC (1991), State Bank of SA (1992), AWA (1992) Bosch (1995) ASIC (1989) CLERP tough penalties against directors who breach their duties of care, diligence or do not comply with the legislation, especially so in relation to insolvent trading Zeebrugge Ferry (1987), Kings Cross Fire, Lockerbie air disaster (1988) Hampel (1998), Turnbull Directors should have responsibility for all aspects of control and a duty to establish a robust system of risk management Barings (1995), Allied Irish Bank (2002), NAB (2004) Basel HIH (2001), One.Tel (2001), Harris Scarfe (2001), Ansett (2001) Clerp9 Enron (2001), WorldCom(2001),Tyco (2001), Adelphia (2001), Qwest (2001), Parmalat Sarbanes-Oxley (2002) AWB (2004), James Hardie (2004)
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‘Anglo’ (British, Australian, New Zealand) Origins in Cadbury (1992) “integrity, openness and accountability” ASX Principles of Good Corporate Governance (2003) Corporate Governance Principles and Recommendations (2007) “Corporate Governance in New Zealand Principles and Guidelines” (Securities Commission 2004)
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Approaches to Corporate Governance Australia, UK and USA are shareholder orientated European countries like Germany are stakeholder oriented USA is legislative and rules-based UK and Australia are co-regulatory and principles-based
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Why corporate governance become so important
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Blunders committed in the past Environment Loss of moral fibre of corporations Business environment characterized by need to compete with the
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Australia - Corporate Governance(Australia Muhammad Fahim...

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