corporate governance - 1590 Words

Table of Contents ç› ®Ã¥ ½â€¢ Executive Summary: Corporate governance is an essential part of modern company operations and management , it relates to business ethics, code of conduct and system to manage a company. However, there are many corporate scandals due to the failure of corporate governance. This report analyzes the corporate governance from multiple aspects. It is through the understanding the relationship between corporate governance and business ethics, evaluating the ASX principles as a guidelines to corporate governance and analyzing the National Australia Bank’s corporate governance. ASX principles referring to problems such as business ethics, code of conduct, diversity and risk management are explained with analyzing†¦show more content†¦The ASX gives some detailed suggestions for the rules, such as board and senior executives should make a commitment to the code of conduct, and explain how the company copes with practical and possible conflict of interest. These suggestions allow corporation execu tives know more detailed information about how to make a promote ethical and responsible decision(ASX2010, pp22-25). 3.2 Principle 4—Oversight corporation operation with an audit committee Corporations should set up an effective audit committee to oversight the company operation. If company lack of an effective governance mechanism will lead to manager’s corruption. There is a conflict interests and a lack of surveillance of management by the audit committee contributed to the Enron collapse in 2001(Li,2010,p37). ASX gives some recommendations about how to make up an effective audit committee. An effective audit committee should be constituted all of non-executive directors ,a majority of them are independent directors, and there are at least there members. These ways can effectively improve the quality of financial report, establish an honest atmosphere, and improve the confidence of public to financial report’s truth and objectivity. An effective audit committee also should have a formal charter to more competently perform the audit committee’s duties(ASX,2010,pp26-28). These recommendations make corporate governance under oversight to take a mor e ethical operation. 3.3 Principle 7—RiskShow MoreRelatedCorporate Governance976 Words   |  4 PagesCorporate Governance Corporate Governance is the relationship between the shareholders, directors, and management of a company, as defined by the corporate character, bylaws, formal policies and rule laws. The corporate governance system was designed to help oversee the decisions and best interest of the shareholders. The system should works accordingly: The shareholders elect directors, who in turn hire management to make the daily executive decisions on the owner s behalf. The company sRead MoreCorporate Governance2313 Words   |  10 PagesOne.Tel and its corporate governance issues Table of contents Introduction One.Tel collapse Impact of One.tel collapse Legal proceedings against One.tel’s directors Things can be learnt from One.tel’s failure Conclusion Introduction Lack of proper corporate governance can be a disaster for campanies. In recent years, major Australian companies such as HIH, One.tel and Harris Scarfe failed under dramatic and high profile circumstances. As a result, executive and non executive directorsRead MoreFinancial Governance And Corporate Governance1746 Words   |  7 Pagesdepth analysis of RBS’s corporate governance failure, in order to provide the reader with the appreciation of the key role that corporate governance plays in successful businesses and in social welfare. 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